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The Zacks Consensus Estimate for Vale’s third-quarter total sales is pegged at $9.9 billion, indicating a decline of 21.6% from the year-ago quarter. The consensus mark for earnings has moved south by 20% to 57 cents over the past seven days. The figure suggests a slump of 51% from the prior-year quarter.
Q2 Results
Vale’s second-quarter earnings per share and revenues came in lower than the year-ago quarter. While revenues missed the Zacks Consensus Estimate, earnings beat the same. The company delivered an average positive surprise of 17.4% over the trailing four quarters.
Vale recently provided third-quarter 2022 production update, which offers a sneak peek as to how the company is likely to fare in the to-be-reported quarter. Iron ore production was around 89.7 million tons in the third quarter, up 1.1% year over year and up 21% sequentially.
Production at the Northern System benefitted from the dry weather. The Southern system production was higher due to increased third-party ore purchases and improved performances at Paraopeba Complex and Vargem Grande.
Sales volumes of iron ore fines and pellets were around 77.6 Mt in the quarter. It represents a 6% increase from the second quarter of 2022 and compared with second-quarter 2021, sales were up 4%. Iron accounts for around 80% of Vale’s revenues. Iron ore prices had lost steam through the third quarter amid persistent worries about weak demand from China.
Recurring COVID lockdowns and fears of a slowdown in demand due to an ailing property sector affected iron ore prices. Soaring electricity prices induced shutdowns of multiple steel plants in Europe as well ascapacity cuts. This is likely to get reflected in Vale’s third-quarter results.
Nickel sales were up 6% year on year and 12.7% sequentially to 44.3 kt. Vale sold 70.5 kt of copper, which came in 7.8% higher than the last-year quarter and 36.9% higher than the second quarter of this year.
Over the course of the third quarter, a series of factors, including lingering worries of a global economic slowdown, weak demand in China, and higher U.S interest rates, led to a downward trend in nickel and copper prices as well.
Even though Vale witnessed improved sales volumes of these metals, this gain is expected to have been offset by lower metal prices. The company has been facing higher input costs, particularly diesel and freight costs, which are likely to have weighed on its margins in the quarter to be reported. However, cost control efforts may have negated some of this impact.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Vale this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
In a year’s time, shares of Vale have gained 3%, compared with the industry’s rise of 0.5%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation (FMC - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Image: Bigstock
Vale (VALE) to Report Q3 Earnings: What's in Store?
Vale S.A (VALE - Free Report) is scheduled to report third-quarter 2022 results on Oct 27, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for Vale’s third-quarter total sales is pegged at $9.9 billion, indicating a decline of 21.6% from the year-ago quarter. The consensus mark for earnings has moved south by 20% to 57 cents over the past seven days. The figure suggests a slump of 51% from the prior-year quarter.
Q2 Results
Vale’s second-quarter earnings per share and revenues came in lower than the year-ago quarter. While revenues missed the Zacks Consensus Estimate, earnings beat the same. The company delivered an average positive surprise of 17.4% over the trailing four quarters.
VALE S.A. Price and EPS Surprise
VALE S.A. price-eps-surprise | VALE S.A. Quote
Factors to Note
Vale recently provided third-quarter 2022 production update, which offers a sneak peek as to how the company is likely to fare in the to-be-reported quarter. Iron ore production was around 89.7 million tons in the third quarter, up 1.1% year over year and up 21% sequentially.
Production at the Northern System benefitted from the dry weather. The Southern system production was higher due to increased third-party ore purchases and improved performances at Paraopeba Complex and Vargem Grande.
Sales volumes of iron ore fines and pellets were around 77.6 Mt in the quarter. It represents a 6% increase from the second quarter of 2022 and compared with second-quarter 2021, sales were up 4%. Iron accounts for around 80% of Vale’s revenues. Iron ore prices had lost steam through the third quarter amid persistent worries about weak demand from China.
Recurring COVID lockdowns and fears of a slowdown in demand due to an ailing property sector affected iron ore prices. Soaring electricity prices induced shutdowns of multiple steel plants in Europe as well ascapacity cuts. This is likely to get reflected in Vale’s third-quarter results.
Nickel sales were up 6% year on year and 12.7% sequentially to 44.3 kt. Vale sold 70.5 kt of copper, which came in 7.8% higher than the last-year quarter and 36.9% higher than the second quarter of this year.
Over the course of the third quarter, a series of factors, including lingering worries of a global economic slowdown, weak demand in China, and higher U.S interest rates, led to a downward trend in nickel and copper prices as well.
Even though Vale witnessed improved sales volumes of these metals, this gain is expected to have been offset by lower metal prices. The company has been facing higher input costs, particularly diesel and freight costs, which are likely to have weighed on its margins in the quarter to be reported. However, cost control efforts may have negated some of this impact.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Vale this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Vale is 0.00%.
Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Image Source: Zacks Investment Research
In a year’s time, shares of Vale have gained 3%, compared with the industry’s rise of 0.5%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation (FMC - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.