Warrior Met Coal LLC (HCC) shares surged 7.48% in pre-market trading on Thursday, building on the previous day's impressive 13.52% gain. The continued upward momentum comes after the metallurgical coal producer reported stronger-than-expected third-quarter earnings and received a target price upgrade from BMO Capital Markets.

The company's Q3 performance significantly exceeded analyst expectations, with a reported net income of $36.6 million, or $0.70 per diluted share, compared to the estimated loss of $0.33 per share. Revenue reached $328.589 million, surpassing the forecast of $304.334 million. Warrior Met Coal attributed these strong results to a 27% increase in total sales volumes and a 17% rise in total production volumes year-over-year. The early commencement of longwall operations at the Blue Creek mine, eight months ahead of schedule, played a crucial role in this outperformance, prompting the company to raise its full-year production volume guidance by 10%.

Adding to the positive sentiment, BMO Capital Markets raised its target price for Warrior Met Coal from $65 to $72, reflecting increased confidence in the company's growth prospects. This upgrade, combined with the strong Q3 results and operational improvements, including securing a federal coal lease covering approximately 14,050 acres in Tuscaloosa, has fueled investor optimism. The pre-market surge suggests that market participants continue to respond favorably to Warrior Met Coal's improved financial performance and enhanced growth outlook.