Aug 2 (Reuters) - Shares of Walter Energy rose over 6 percent on Thursday, a day after the U.S. coal miner’s quarterly profit beat Wall Street estimates.
In morning trading on the New York Stock Exchange, Walter’s stock was 6.2 percent higher at $36.54.
“Walter’s core operations in the U.S. performed well and exceeded our expectations,” said analyst Lucas Pipes of Brean Murray Carret & Co.
But he noted that higher costs at Walter’s Canadian mines remain “a major uncertainty.”
After the close of markets on Wednesday, Alabama-based Walter reported second-quarter profit of $32 million or 51 cents per share, a sharp drop from $114 million or $1.83 per share in the second quarter of 2011. Revenue fell to $678 million from $771 million a year earlier as coal prices dropped.
But the results beat the average analysts’ expectation of 36 cents per share and revenue of $665.3 million, according to Thomson Reuters I/B/E/S.
Reporting By Steve James; Editing by Kenneth Barry