SunCoke Energy, Inc. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

Investors in SunCoke Energy, Inc. (NYSE:SXC) had a good week, as its shares rose 4.9% to close at US$6.90 following the release of its quarterly results. Revenues came in well ahead of expectations at US$455m, although statutory earnings per share fell badly short. SunCoke Energy reported a loss of US$0.05 per share, whereas the analysts had previously expected a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus, from the two analysts covering SunCoke Energy, is for revenues of US$1.81b in 2026. This implies a small 2.5% reduction in SunCoke Energy's revenue over the past 12 months. SunCoke Energy is also expected to turn profitable, with statutory earnings of US$0.21 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.76b and earnings per share (EPS) of US$0.36 in 2026. So it's pretty clear the analysts have mixed opinions on SunCoke Energy after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.

View our latest analysis for SunCoke Energy

There's been no major changes to the price target of US$9.50, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 3.3% annualised decline to the end of 2026. That is a notable change from historical growth of 5.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. It's pretty clear that SunCoke Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SunCoke Energy. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$9.50, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for SunCoke Energy going out as far as 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - SunCoke Energy has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.