Brean Capital Maintains Hold On Walter Energy Following Fourth Quarter Results

In a research report released Wednesday, Brean Capital analyst Lucas Pipes maintained a Hold rating on Walter Energy (NYSE:WLT) with a $1 fair value estimate, as the company reported a fourth-quarter miss with EBITDA of $(19.1) million versus consensus estimates of ~$0.8 million and our estimate of $(11.9) million.

Pipes noted, “On the company’s Q4 earnings and 2015 guidance, we are revising our 2015 and 2016 EPS estimates to $(5.80) and $(3.09), respectively, from $(5.72) and $(4.59) previously. We maintain our Hold rating at current levels.” The analyst added, “Positively, the company did announce an agreement with Ridley terminal to defer take-or-pay charges through 2017, and lowered the company’s commitment to 4 mtpa beyond 2017, in return for extending the agreement by three years.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Lucas Pipes has a total average return of -7.4% and a 20.6% success rate. Pipes has a -33.1% average return when recommending WLT, and is ranked #3301 out of 3476 analysts.

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