Walter Energy (NYSE:WLT) Earnings Raised on Closing WTN Deal

After closing the deal with WTN, Walter Energy (NYSE:WLT) had its EPS estimates and price target raised by FBR Capital, although changes could come said the company, based on things related to synergies and their costs, along with met coal assumptions.

FBR said, "WLT and WTN finalized their merger agreement, with financing of 70% cash and a 30% stock mix, in line with our expectations. This morning, we raise our 2011 EPS estimates modestly but raise our 2012 EPS estimate by 15% to reflect a 1Q11 close. We raise our 2011/2012 EBITDA estimates by an average of 67% to account for WTN's contribution...We are increasing our WLT 2011/2012 pro forma EPS and EBITDA estimates to $8.53/$10.87, from $8.39/$9.31. We recognize that there could be some modifications to our estimates, based on synergies, met coal assumptions, and operating costs."

FBR Capital maintains an "Outperform" on Walter Energy, which was trading at $105.92, up by $0.32, or 0.30 percent, as of 11:42 AM EST. They raised their price target on Walter from $98 to $122.

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