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Quarterly adjusted earnings came in at 19 cents, exceeding the Zacks Consensus Estimate of 14 cents. The company had reported loss of 19 cents per share in the year-ago quarter.
Revenues
Net operating revenue rose 13% year over year and 11% sequentially to $7.3 billion.
Of total net operating revenue, sales of ferrous minerals accounted for 67.7%, coal contributed 2.2%, base metals comprised 21.6%, fertilizer nutrients made up for 8.2%. The remaining 0.34% was sourced miscellaneously.
Geographically, 16.3% of revenues were generated from South America, 55.7% from Asia, 7.5% from North America, 15.7% from Europe, 3.2% from the Middle East and 1.6% from Rest of the World.
Expenses
In the third quarter, cost of goods sold totaled $5 billion, down 1.7% year over year. Selling, general and administrative expenditure climbed 16.8% to $153 million, while research and development expenses plunged 29.8% to $85 million, both on a year-over-year basis.
Balance Sheet/Cash Flow
Vale exited the third quarter with cash and cash equivalents of $5.4 billion compared with $4.4 billion in the year-ago period. Non-current liabilities came in at $49.4 billion, up from $44.3 billion recorded a year ago.
Net cash from operating activities came in at $2.4 billion as against $1.6 million in the year-ago comparable period. Capital spending totaled $1.2 billion compared with $1.9 billion in third-quarter 2015.
Outlook
Vale expects to improve its financial fundamentals on the back of specialized cost-saving plans, productivity enhancement schemes, growth projects and superior mining yield, going forward. Moreover, the company aims to stabilize its absolute debt level in the coming quarters through efficient disinvestment programs and suitable capital-deployment strategies.
Some better-ranked stocks within the industry that warrant a look include:
The Chemours Company (CC - Free Report) currently sports a Zacks Rank #1 and has an average positive earnings surprise of 144.74% over the last four quarters.
Cabot Corporation (CBT - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 2.07% over the four trailing quarters.
Coeur Mining, Inc. (CDE - Free Report) currently has a Zacks Rank #2 and has an average positive earnings surprise of 277.67% over the trailing four quarters.
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Vale (VALE) Beats on Q3 Earnings, Revenue Estimates
Mining giant Vale S.A.’s (VALE - Free Report) reported robust third-quarter 2016 results.
Quarterly adjusted earnings came in at 19 cents, exceeding the Zacks Consensus Estimate of 14 cents. The company had reported loss of 19 cents per share in the year-ago quarter.
Revenues
Net operating revenue rose 13% year over year and 11% sequentially to $7.3 billion.
Of total net operating revenue, sales of ferrous minerals accounted for 67.7%, coal contributed 2.2%, base metals comprised 21.6%, fertilizer nutrients made up for 8.2%. The remaining 0.34% was sourced miscellaneously.
Geographically, 16.3% of revenues were generated from South America, 55.7% from Asia, 7.5% from North America, 15.7% from Europe, 3.2% from the Middle East and 1.6% from Rest of the World.
Expenses
In the third quarter, cost of goods sold totaled $5 billion, down 1.7% year over year. Selling, general and administrative expenditure climbed 16.8% to $153 million, while research and development expenses plunged 29.8% to $85 million, both on a year-over-year basis.
Balance Sheet/Cash Flow
Vale exited the third quarter with cash and cash equivalents of $5.4 billion compared with $4.4 billion in the year-ago period. Non-current liabilities came in at $49.4 billion, up from $44.3 billion recorded a year ago.
Net cash from operating activities came in at $2.4 billion as against $1.6 million in the year-ago comparable period. Capital spending totaled $1.2 billion compared with $1.9 billion in third-quarter 2015.
Outlook
Vale expects to improve its financial fundamentals on the back of specialized cost-saving plans, productivity enhancement schemes, growth projects and superior mining yield, going forward. Moreover, the company aims to stabilize its absolute debt level in the coming quarters through efficient disinvestment programs and suitable capital-deployment strategies.
VALE SA Price, Consensus and EPS Surprise
VALE SA Price, Consensus and EPS Surprise | VALE SA Quote
Other Stocks to Consider
Vale currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks within the industry that warrant a look include:
The Chemours Company (CC - Free Report) currently sports a Zacks Rank #1 and has an average positive earnings surprise of 144.74% over the last four quarters.
Cabot Corporation (CBT - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 2.07% over the four trailing quarters.
Coeur Mining, Inc. (CDE - Free Report) currently has a Zacks Rank #2 and has an average positive earnings surprise of 277.67% over the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>