Massey Energy (NYSE:MEE) Earnings Lowered on Costs, Lower Volumes

Massey Energy Co. (NYSE:MEE) had its EPS estimate lowered in the fourth quarter by Barclays (NYSE:BCS), based on higher costs and lower shipping volumes.

Barclays says, "We are adjusting our 4Q 2010 earnings estimate from $0.04/share to -$0.12/share to account for the lower shipment volumes as well as slightly higher costs, which are likely to accompany reduced production volumes. We are maintaining our below-consensus estimates for 2011 and beyond.

"We are optimistic that a new CEO at Massey may start providing more credible guidance. We are not optimistic that geological challenges facing Central Appalachian miners are over. While we are very bullish on coal, we believe there are better values within coal equities."

Barclays reiterates an "Equalweight" rating on Massey Energy Co., which closed Friday at $56.11, gaining $1.46, or 2.67 percent. Barclays boosted their price target on them from $38 to $48.