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Over the last three months, shares of this Zacks Rank #3 (Hold) stock yielded a return of 15.60% – outperforming 15.42% gain provided by the Zacks categorized Mining-Iron industry.
Earnings
Quarterly adjusted earnings came in at 53 cents, handily exceeding the Zacks Consensus Estimate of 34 cents. The company had reported loss of 20 cents per share in the year-ago quarter.
Full-year 2016 adjusted earnings came in at 96 cents per share as against the loss of 33 cents reported in the prior-year period.
Revenues
Net operating revenue surged 64.3% year over year to $9.7 billion.
Of the total net operating revenue, sales of ferrous minerals accounted for 72.7%, coal contributed 3.9%, base metals comprised 18.2% and fertilizer nutrients made up for 4.4%. The remaining 0.8% was sourced miscellaneously.
Geographically, 7.4% of revenues were generated from South America, 60.8% from Asia, 6.8% from North America, 15.4% from Europe, 3.5% from the Middle East and 1.8% from Rest of the World.
Full-year 2016 net operating revenue came in at $29.4 billion compared with $25.6 billion generated in 2015.
Expenses
In the fourth quarter, cost of goods sold totaled $5.5 billion, up 8.2% year over year. Selling, general and administrative expenditure dipped 9.6% to $151 million; while research and development expenses edged down 0.8% to $118 million, both on a year-over-year basis.
Balance Sheet/Cash Flow
Vale exited the fourth quarter with cash and cash equivalents of $4.3 billion as against $3.6 billion in the prior-year period. Non-current liabilities came in at $4.5 billion, up from $4 billion recorded in the prior year.
In the fourth quarter, net cash provided from operating activities came in at $2.5 billion compared with $1.3 million in the year-ago period. Capital spending summed $1.4 billion as against $2.2 billion in fourth-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. Moreover, the company is aimed at stabilizing its absolute debt level in the coming quarters through efficient disinvestment programs and suitable capital-deployment strategies.
Albemarle Corporation (ALB - Free Report) presently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 27.13% for the trailing four quarters.
Arconic Inc. also carries a Zacks Rank #2 and has an average positive earnings surprise of 79.97% for the past four quarters.
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Vale (VALE) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Mining giant, Vale S.A. (VALE - Free Report) reported robust fourth-quarter 2016 results.
Over the last three months, shares of this Zacks Rank #3 (Hold) stock yielded a return of 15.60% – outperforming 15.42% gain provided by the Zacks categorized Mining-Iron industry.
Earnings
Quarterly adjusted earnings came in at 53 cents, handily exceeding the Zacks Consensus Estimate of 34 cents. The company had reported loss of 20 cents per share in the year-ago quarter.
Full-year 2016 adjusted earnings came in at 96 cents per share as against the loss of 33 cents reported in the prior-year period.
Revenues
Net operating revenue surged 64.3% year over year to $9.7 billion.
Of the total net operating revenue, sales of ferrous minerals accounted for 72.7%, coal contributed 3.9%, base metals comprised 18.2% and fertilizer nutrients made up for 4.4%. The remaining 0.8% was sourced miscellaneously.
Geographically, 7.4% of revenues were generated from South America, 60.8% from Asia, 6.8% from North America, 15.4% from Europe, 3.5% from the Middle East and 1.8% from Rest of the World.
Full-year 2016 net operating revenue came in at $29.4 billion compared with $25.6 billion generated in 2015.
Expenses
In the fourth quarter, cost of goods sold totaled $5.5 billion, up 8.2% year over year. Selling, general and administrative expenditure dipped 9.6% to $151 million; while research and development expenses edged down 0.8% to $118 million, both on a year-over-year basis.
Balance Sheet/Cash Flow
Vale exited the fourth quarter with cash and cash equivalents of $4.3 billion as against $3.6 billion in the prior-year period. Non-current liabilities came in at $4.5 billion, up from $4 billion recorded in the prior year.
In the fourth quarter, net cash provided from operating activities came in at $2.5 billion compared with $1.3 million in the year-ago period. Capital spending summed $1.4 billion as against $2.2 billion in fourth-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. Moreover, the company is aimed at stabilizing its absolute debt level in the coming quarters through efficient disinvestment programs and suitable capital-deployment strategies.
VALE S.A. Price, Consensus and EPS Surprise
VALE S.A. Price, Consensus and EPS Surprise | VALE S.A. Quote
Stocks to Consider
Some better-ranked stocks within the industry include:
Amerigo Resources Ltd. (ARREF - Free Report) has an average positive earnings surprise of 12.50% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle Corporation (ALB - Free Report) presently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 27.13% for the trailing four quarters.
Arconic Inc. also carries a Zacks Rank #2 and has an average positive earnings surprise of 79.97% for the past four quarters.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>