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Teck Resources (TECK) to Report Q1 Earnings: What's in Store?
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Teck Resources Limited (TECK - Free Report) will release first-quarter 2022 results after market close on Apr 26.
Q4 Results
In the last reported quarter, Teck’s earnings and sales missed the respective Zacks Consensus Estimate, while increasing year over year. The company has a trailing four-quarter earnings surprise of 12.9%, on average.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter 2022 earnings per share is currently pegged at $2.11, suggesting growth of 339.5% from the prior-year quarter’s levels. The same for total revenues is pinned at $3.74 billion, indicating a year-over-year increase of 85.8%.
Price Performance
Teck’s shares have appreciated 82.8% in the past year compared with the industry’s growth of 6.8%.
Image Source: Zacks Investment Research
Factors at Play
Teck is witnessing higher prices of its principal products and strong performance of its mine operations, which is likely to have driven first-quarter performance.
The steelmaking coal segment is likely to have gained from record prices in FOB Australia steelmaking coal and strong demand from steelmakers in first-quarter 2022. The company recently stated that the average realized steelmaking coal price in the March-end quarter was $357 per ton, reflecting year-over-year growth of 173%. However, its first-quarter steelmaking coal sales were 6 million tons, which fell short of the low end of the company's guidance of 6.1-6.5 million tons and a sales volume of 6.2 million tons reported in the first quarter of 2021. The shutdown of the Canadian Pacific Railway's operations due to a wage and pension-related dispute with its union caused logistics disruptions in British Columbia and led to this downside performance.
The company’s contained zinc sales in the January-Mach quarter are expected to have been impacted by the late start of the shipping season and weather-related shipping delays in the third and the fourth quarter.
Teck is bearing the brunt of inflationary cost pressures, particularly in diesel prices, mill steel and replacement parts, supplies and labor costs. Mining equipment, fuel, tires and explosives costs are also high due to price increases for certain commodities such as steel, crude oil and natural gas. These factors are likely to have dented the company’s margin in the first quarter. The Copper and steelmaking coal segments are likely to have been unfavorably impacted by these factors.
Our proven model conclusively predicts an earnings beat for Teck this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Teck is at +6.52%.
Here are some Basic Materials stocks which you may consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
The Mosaic Company (MOS - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #1. The Zacks Consensus Estimate for the company's earnings for the first quarter of 2022 indicates year-over-year growth of 328%. The estimate has moved up 2.5% in the past 30 days.
Mosaic has an average surprise history of 3.7% in the trailing four quarters. MOS’s shares have gained 102% in the past year.
Carpenter Technology (CRS - Free Report) has an Earnings ESP of +10.99% and a Zacks Rank #2. The Zacks Consensus Estimate for the first quarter of 2022 suggests a loss of 30 cents.
Shares of Carpenter Technology have gained 11.1% over the past year. CRS' earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 21.8%.
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3. The Zacks Consensus Estimate for the company's earnings for the first quarter of 2022 indicates year-over-year growth of 51.5%. The estimate has moved up 2% over the past 30 days.
Shares of Huntsman have appreciated 27.6% over the past year. HUN's earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 10.8%.
Image: Bigstock
Teck Resources (TECK) to Report Q1 Earnings: What's in Store?
Teck Resources Limited (TECK - Free Report) will release first-quarter 2022 results after market close on Apr 26.
Q4 Results
In the last reported quarter, Teck’s earnings and sales missed the respective Zacks Consensus Estimate, while increasing year over year. The company has a trailing four-quarter earnings surprise of 12.9%, on average.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter 2022 earnings per share is currently pegged at $2.11, suggesting growth of 339.5% from the prior-year quarter’s levels. The same for total revenues is pinned at $3.74 billion, indicating a year-over-year increase of 85.8%.
Price Performance
Teck’s shares have appreciated 82.8% in the past year compared with the industry’s growth of 6.8%.
Image Source: Zacks Investment Research
Factors at Play
Teck is witnessing higher prices of its principal products and strong performance of its mine operations, which is likely to have driven first-quarter performance.
The steelmaking coal segment is likely to have gained from record prices in FOB Australia steelmaking coal and strong demand from steelmakers in first-quarter 2022. The company recently stated that the average realized steelmaking coal price in the March-end quarter was $357 per ton, reflecting year-over-year growth of 173%. However, its first-quarter steelmaking coal sales were 6 million tons, which fell short of the low end of the company's guidance of 6.1-6.5 million tons and a sales volume of 6.2 million tons reported in the first quarter of 2021. The shutdown of the Canadian Pacific Railway's operations due to a wage and pension-related dispute with its union caused logistics disruptions in British Columbia and led to this downside performance.
The company’s contained zinc sales in the January-Mach quarter are expected to have been impacted by the late start of the shipping season and weather-related shipping delays in the third and the fourth quarter.
Teck is bearing the brunt of inflationary cost pressures, particularly in diesel prices, mill steel and replacement parts, supplies and labor costs. Mining equipment, fuel, tires and explosives costs are also high due to price increases for certain commodities such as steel, crude oil and natural gas. These factors are likely to have dented the company’s margin in the first quarter. The Copper and steelmaking coal segments are likely to have been unfavorably impacted by these factors.
Teck Resources Ltd Price and EPS Surprise
Teck Resources Ltd price-eps-surprise | Teck Resources Ltd Quote
What Our Zacks Model Indicates
Our proven model conclusively predicts an earnings beat for Teck this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Teck is at +6.52%.
Zacks Rank: Teck currently carries a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some Basic Materials stocks which you may consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
The Mosaic Company (MOS - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #1. The Zacks Consensus Estimate for the company's earnings for the first quarter of 2022 indicates year-over-year growth of 328%. The estimate has moved up 2.5% in the past 30 days.
Mosaic has an average surprise history of 3.7% in the trailing four quarters. MOS’s shares have gained 102% in the past year.
Carpenter Technology (CRS - Free Report) has an Earnings ESP of +10.99% and a Zacks Rank #2. The Zacks Consensus Estimate for the first quarter of 2022 suggests a loss of 30 cents.
Shares of Carpenter Technology have gained 11.1% over the past year. CRS' earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 21.8%.
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3. The Zacks Consensus Estimate for the company's earnings for the first quarter of 2022 indicates year-over-year growth of 51.5%. The estimate has moved up 2% over the past 30 days.
Shares of Huntsman have appreciated 27.6% over the past year. HUN's earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 10.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.