Vale S.A. (VALE - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 82 cents, which beat the Zacks Consensus Estimate of 63 cents. The company had reported earnings per share of $1.42 in the year-ago quarter. Lower iron ore prices mainly led to the drop in earnings.
Including one-time items, the company had reported earnings per share of $1.07 in the fourth quarter of 2021.
Revenues
Net operating revenues declined 9% year over year to $11.9 billion. The top line, however, surpassed the Zacks Consensus Estimate of $11.5 billion.
Net operating revenues at Iron Solutions declined 13% year over year to $9.3 billion due to lower iron ore prices. Energy Transition Metals’ net operating revenues gained 15% to $2.55 billion on higher year-over-year sales volume for nickel. Also, elevated nickel prices than the last-year quarter helped offset the impact of lower copper prices.
Operating Performance
In the fourth quarter of 2022, the cost of goods sold totaled $7.2 billion, up 10% year over year. The gross profit plunged 28% year over year to $4.8 billion. The gross margin was 40.1% compared with 50.4% in the prior-year quarter.
Selling, general and administrative expenditure moved up 13% year over year to $1489 million. Research and evaluation expenses climbed 23% to $218 million from the year-ago quarter.
Adjusted operating income was $3.7 billion in the reported quarter. The figure indicated a 5% decline from the prior-year quarter. Adjusted EBITDA was $4.6 billion in the reported quarter compared with $4.7 billion in the prior-year quarter.
Pro-forma adjusted EBITDA (excluding expenses related to Brumadinho and COVID) plunged 27% year over year to $5 billion.
Iron Solutions’ adjusted EBITDA was $4.7 billion, reflecting a 26% downfall from the last-year quarter. Energy Transition Metals EBITDA moved down to $775 million from $811 million in the prior-year quarter.
Balance Sheet & Cash Flow
Vale exited 2022 with cash and cash equivalents of $4.7 billion compared with $11.7 billion at the end of last year. Cash flow from operations was $11.4 billion in 2022 compared with $26 billion in 2021.
Gross debt at the end of 2022 was $11.2 billion compared with $12.2 billion at the end of 2021. Vale paid out $12.6 billion as dividends, interest on capital and share repurchases in 2022.
2022 Performance
Vale reported adjusted earnings per share of $3.61, which beat the Zacks Consensus Estimate of $3.01. Including one-time items, the company reported earnings per share of $4.05 in 2022 compared with $4.47 in 2021. Net operating revenues slumped 20% year over year to $43.8 billion but beat the Zacks Consensus Estimate of $43.6 billion.
Net operating revenues declined 9% year over year to $11.9 billion. The top line surpassed the Zacks Consensus Estimate of $11.5 billion.
Price Performance
In the past year, shares of Vale have gained 2.3%, in line with the industry.
Zacks Rank & Other Stocks to Consider
Vale currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Teck Resources Limited (TECK - Free Report) . CALM and RS currently sport a Zacks Rank #1 (Strong Buy), and TECK carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 43.6% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 41.7% in a year.
The Zacks Consensus Estimate for Teck Resources’ 2022 earnings per share is pegged at $6.89, suggesting 52.43% growth from the year-ago reported figure. Earnings estimates have moved 0.7% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 24.4% in the past year.
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Vale S.A. (VALE - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 82 cents, which beat the Zacks Consensus Estimate of 63 cents. The company had reported earnings per share of $1.42 in the year-ago quarter. Lower iron ore prices mainly led to the drop in earnings.
Including one-time items, the company had reported earnings per share of $1.07 in the fourth quarter of 2021.
Revenues
Net operating revenues declined 9% year over year to $11.9 billion. The top line, however, surpassed the Zacks Consensus Estimate of $11.5 billion.
Net operating revenues at Iron Solutions declined 13% year over year to $9.3 billion due to lower iron ore prices. Energy Transition Metals’ net operating revenues gained 15% to $2.55 billion on higher year-over-year sales volume for nickel. Also, elevated nickel prices than the last-year quarter helped offset the impact of lower copper prices.
Operating Performance
In the fourth quarter of 2022, the cost of goods sold totaled $7.2 billion, up 10% year over year. The gross profit plunged 28% year over year to $4.8 billion. The gross margin was 40.1% compared with 50.4% in the prior-year quarter.
Selling, general and administrative expenditure moved up 13% year over year to $1489 million. Research and evaluation expenses climbed 23% to $218 million from the year-ago quarter.
Adjusted operating income was $3.7 billion in the reported quarter. The figure indicated a 5% decline from the prior-year quarter. Adjusted EBITDA was $4.6 billion in the reported quarter compared with $4.7 billion in the prior-year quarter.
Pro-forma adjusted EBITDA (excluding expenses related to Brumadinho and COVID) plunged 27% year over year to $5 billion.
Iron Solutions’ adjusted EBITDA was $4.7 billion, reflecting a 26% downfall from the last-year quarter. Energy Transition Metals EBITDA moved down to $775 million from $811 million in the prior-year quarter.
Balance Sheet & Cash Flow
Vale exited 2022 with cash and cash equivalents of $4.7 billion compared with $11.7 billion at the end of last year. Cash flow from operations was $11.4 billion in 2022 compared with $26 billion in 2021.
Gross debt at the end of 2022 was $11.2 billion compared with $12.2 billion at the end of 2021. Vale paid out $12.6 billion as dividends, interest on capital and share repurchases in 2022.
2022 Performance
Vale reported adjusted earnings per share of $3.61, which beat the Zacks Consensus Estimate of $3.01. Including one-time items, the company reported earnings per share of $4.05 in 2022 compared with $4.47 in 2021. Net operating revenues slumped 20% year over year to $43.8 billion but beat the Zacks Consensus Estimate of $43.6 billion.
Net operating revenues declined 9% year over year to $11.9 billion. The top line surpassed the Zacks Consensus Estimate of $11.5 billion.
Price Performance
In the past year, shares of Vale have gained 2.3%, in line with the industry.
Zacks Rank & Other Stocks to Consider
Vale currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Teck Resources Limited (TECK - Free Report) . CALM and RS currently sport a Zacks Rank #1 (Strong Buy), and TECK carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 43.6% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 41.7% in a year.
The Zacks Consensus Estimate for Teck Resources’ 2022 earnings per share is pegged at $6.89, suggesting 52.43% growth from the year-ago reported figure. Earnings estimates have moved 0.7% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 24.4% in the past year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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