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In the last reported quarter, Teck’s earnings and sales beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 11.2%, on average.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2022 earnings per share is currently pegged at $2.31, suggesting growth of 353% from the prior-year quarter’s levels. The same for total revenues is pinned at $4.02 billion, indicating a year-over-year increase of 93.1%.
Price Performance
Teck’s shares have appreciated 28.5% in the past year compared with the industry’s fall of 26.5%.
Image Source: Zacks Investment Research
Factors at Play
Teck’s steelmaking coal segment will likely have gained from record steelmaking coal FOB prices and strong demand from steelmakers in second-quarter 2022. The company recently stated that the average realized steelmaking coal price in the June-end quarter was $453 per ton, reflecting year-over-year growth of 27%. Its second-quarter steelmaking coal sales were 6.3 million tons, higher than the volume of 6.2 million reported in the year-ago quarter. The figure matched the low end of the company's guidance in the band of 6.3-6.7 million tons. TECK expects to record provisional pricing adjustments of a negative $73 million in the quarter due to the dip in coal prices at the end of the second quarter.
The company’s concentrate Red Dog zinc sales in the April-June quarter are expected to have reflected the normal seasonal pattern of Red Dog sales. Red Dog sales for the quarter are expected to be between 50,000 and 70,000 tons.
Teck is bearing the brunt of inflationary cost pressures, particularly in diesel prices and transportation 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 will likely have dented the company’s margin in the second quarter. Strong performance of its mine operations are expected to have negated some of the impact.
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 +8.16%.
Zacks Rank: Teck currently carries a Zacks Rank of 3.
Here are some other Basic Materials stocks which you may consider, as our model shows that these too 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 Aug 3, has an Earnings ESP of +18.98% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 10.3% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.93.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +1.03% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 3.9% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter is currently pegged at $4.58.
FMC Corporation (FMC - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +0.62% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for FMC’s second-quarter earnings has been stable over the past 60 days. The consensus estimate for FMC’s earnings for the second quarter is pegged at $1.90.
Image: Bigstock
Teck Resources (TECK) to Report Q2 Earnings: What's in Store?
Teck Resources Limited (TECK - Free Report) will release second-quarter 2022 results after market close on Jul 27.
Q1 Results
In the last reported quarter, Teck’s earnings and sales beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 11.2%, on average.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2022 earnings per share is currently pegged at $2.31, suggesting growth of 353% from the prior-year quarter’s levels. The same for total revenues is pinned at $4.02 billion, indicating a year-over-year increase of 93.1%.
Price Performance
Teck’s shares have appreciated 28.5% in the past year compared with the industry’s fall of 26.5%.
Image Source: Zacks Investment Research
Factors at Play
Teck’s steelmaking coal segment will likely have gained from record steelmaking coal FOB prices and strong demand from steelmakers in second-quarter 2022. The company recently stated that the average realized steelmaking coal price in the June-end quarter was $453 per ton, reflecting year-over-year growth of 27%. Its second-quarter steelmaking coal sales were 6.3 million tons, higher than the volume of 6.2 million reported in the year-ago quarter. The figure matched the low end of the company's guidance in the band of 6.3-6.7 million tons. TECK expects to record provisional pricing adjustments of a negative $73 million in the quarter due to the dip in coal prices at the end of the second quarter.
The company’s concentrate Red Dog zinc sales in the April-June quarter are expected to have reflected the normal seasonal pattern of Red Dog sales. Red Dog sales for the quarter are expected to be between 50,000 and 70,000 tons.
Teck is bearing the brunt of inflationary cost pressures, particularly in diesel prices and transportation 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 will likely have dented the company’s margin in the second quarter. Strong performance of its mine operations are expected to have negated some of the impact.
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 +8.16%.
Zacks Rank: Teck currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other Basic Materials stocks which you may consider, as our model shows that these too 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 Aug 3, has an Earnings ESP of +18.98% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 10.3% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.93.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +1.03% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 3.9% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter is currently pegged at $4.58.
FMC Corporation (FMC - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +0.62% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for FMC’s second-quarter earnings has been stable over the past 60 days. The consensus estimate for FMC’s earnings for the second quarter is pegged at $1.90.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.