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Here's What You Should Know Ahead of VALE's Q2 Earnings
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Vale S.A. (VALE - Free Report) is expected to report improvements in its top and bottom lines when it reports second-quarter 2024 results on Jul 25, before the opening bell.
The Zacks Consensus Estimate for Vale’s sales is pegged at $9.99 billion, indicating a 3.2% increase from the year-ago quarter's reported figure. The consensus mark for earnings has moved down 3.85% over the past 360 days and is pegged at 50 cents per share. The figure indicates a 150% year-over-year improvement.
Image Source: Zacks Investment Research
Earnings Surprise History
VALE has missed the Zacks Consensus Estimate for earnings in three quarters and beat the mark once. Over the past four quarters, the company has recorded an average negative surprise of 26.84%.
Image Source: Zacks Investment Research
Factors Likely to Have Shaped Q2 Performance
Vale recently provided second-quarter production and sales update, which can indicate how the company is likely to fare in the to-be-reported quarter. Iron ore production was around 80.6 Mt ,which was up 2% year over year, attributed to improved operating performance at the S11D mine and Vargem Grande. Pellet production declined 2.4% year over year to 8.9 Mt. Iron production came above the Zacks Consensus Estimate of 78.8 Mt.
Iron ore fines sales improved 8.2% from the year-ago quarter to 68.5 Mt while pellet sales were up 0.6% to 8.9 Mt. However, the average realized iron ore fines price was $98.2 per ton, down 0.3% year over year, due to lower iron ore prices. Realized prices for iron ore pellets were down 2% to $157.2 per ton.
The Iron Solutions segment accounts for around 93% of Vale’s revenues. The Zacks Consensus Estimate for iron ore revenues is around $6.4 billion, indicating 3% growth year over year. Gains from improved sales volumes are likely to have been somewhat offset by lower prices. The consensus mark for pellets revenues is $1.67 billion, indicating 18% growth from the year-ago quarter.
Nickel sales were recorded at 34.3 kt, down 15% from the year-ago comparable quarter’s figure. This reflected lower nickel output in the quarter owing to the impact of the planned maintenance strategy at the nickel processing plants. The figure was lower than the consensus estimate of 35 kt.
The average realized nickel price was $18,638 per ton, down 19% compared with $23,070 per ton in the year-ago quarter. This was in line with the decrease in LME nickel reference prices. The Zacks Consensus Estimate for nickel revenues is $828 million, indicating a 32% plunge owing to lower volumes and prices.
Vale sold 76.1 kt of copper in the second quarter, which was 3% higher than last year’s quarter figure. The figure surpassed the Zacks Consensus Estimate of 67 kt.
The average realized price for copper operations only (Salobo and Sossego) was $9,202 per ton, up 31% year over year due to higher LME prices. The average realized copper price for all operations (including copper sales originating from nickel operations) was $9,187 per ton.
The consensus estimate for copper revenues is $865 million, indicating a 61% surge from the year-ago quarter, thereby reflecting higher sales and improved year-over-year prices.
Overall, Vale’s revenues are likely to have reflected the higher sales volumes for iron ore prices and copper and elevated copper prices compared with the year-ago quarter. This is expected to have been offset by lower nickel sales volume as well as lower prices for iron ore and nickel.
The company has been facing higher input costs, particularly diesel and freight costs, in the past few quarters. This is likely to have weighed on its margins. However, cost-control efforts are expected to have negated some of this impact.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Vale 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, but that is not the case here.
Earnings ESP: The Earnings ESP for Vale is -6.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: Vale currently has a Zacks Rank #4 (Sell).
Price Performance
In a year, shares of Vale have declined 20.2%, in line with the industry.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Agnico Eagle Mines’ earnings is pegged at 82 cents per share, indicating growth of 26.2% from the prior-year quarter’s actual. Earnings estimates have moved 1.2% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 16.4%.
ATI Inc. (ATI - Free Report) , set to release second-quarter 2024 earnings on Aug 6, presently has an Earnings ESP of +3.50% and a Zacks Rank of 3.
The Zacks Consensus Estimate for ATI’s earnings has moved up 1.8% in the past 60 days. The consensus estimate for ATI’s earnings is pegged at 58 cents per share. It has an average trailing four-quarter earnings surprise of 8.3%.
Avient (AVNT - Free Report) , scheduled to release second-quarter earnings on Aug 6, currently has an Earnings ESP of +0.20% and a Zacks Rank of 3.
The Zacks Consensus Estimate for AVNT's earnings is pegged at 72 cents per share, which indicates a 14.3% increase from the year-ago quarter’s reported figure. AVNT has a trailing four-quarter average surprise of 6%.
Image: Bigstock
Here's What You Should Know Ahead of VALE's Q2 Earnings
Vale S.A. (VALE - Free Report) is expected to report improvements in its top and bottom lines when it reports second-quarter 2024 results on Jul 25, before the opening bell.
The Zacks Consensus Estimate for Vale’s sales is pegged at $9.99 billion, indicating a 3.2% increase from the year-ago quarter's reported figure. The consensus mark for earnings has moved down 3.85% over the past 360 days and is pegged at 50 cents per share. The figure indicates a 150% year-over-year improvement.
Earnings Surprise History
VALE has missed the Zacks Consensus Estimate for earnings in three quarters and beat the mark once. Over the past four quarters, the company has recorded an average negative surprise of 26.84%.
Image Source: Zacks Investment Research
Factors Likely to Have Shaped Q2 Performance
Vale recently provided second-quarter production and sales update, which can indicate how the company is likely to fare in the to-be-reported quarter. Iron ore production was around 80.6 Mt ,which was up 2% year over year, attributed to improved operating performance at the S11D mine and Vargem Grande. Pellet production declined 2.4% year over year to 8.9 Mt. Iron production came above the Zacks Consensus Estimate of 78.8 Mt.
Iron ore fines sales improved 8.2% from the year-ago quarter to 68.5 Mt while pellet sales were up 0.6% to 8.9 Mt. However, the average realized iron ore fines price was $98.2 per ton, down 0.3% year over year, due to lower iron ore prices. Realized prices for iron ore pellets were down 2% to $157.2 per ton.
The Iron Solutions segment accounts for around 93% of Vale’s revenues. The Zacks Consensus Estimate for iron ore revenues is around $6.4 billion, indicating 3% growth year over year. Gains from improved sales volumes are likely to have been somewhat offset by lower prices. The consensus mark for pellets revenues is $1.67 billion, indicating 18% growth from the year-ago quarter.
Nickel sales were recorded at 34.3 kt, down 15% from the year-ago comparable quarter’s figure. This reflected lower nickel output in the quarter owing to the impact of the planned maintenance strategy at the nickel processing plants. The figure was lower than the consensus estimate of 35 kt.
The average realized nickel price was $18,638 per ton, down 19% compared with $23,070 per ton in the year-ago quarter. This was in line with the decrease in LME nickel reference prices. The Zacks Consensus Estimate for nickel revenues is $828 million, indicating a 32% plunge owing to lower volumes and prices.
Vale sold 76.1 kt of copper in the second quarter, which was 3% higher than last year’s quarter figure. The figure surpassed the Zacks Consensus Estimate of 67 kt.
The average realized price for copper operations only (Salobo and Sossego) was $9,202 per ton, up 31% year over year due to higher LME prices. The average realized copper price for all operations (including copper sales originating from nickel operations) was $9,187 per ton.
The consensus estimate for copper revenues is $865 million, indicating a 61% surge from the year-ago quarter, thereby reflecting higher sales and improved year-over-year prices.
Overall, Vale’s revenues are likely to have reflected the higher sales volumes for iron ore prices and copper and elevated copper prices compared with the year-ago quarter. This is expected to have been offset by lower nickel sales volume as well as lower prices for iron ore and nickel.
The company has been facing higher input costs, particularly diesel and freight costs, in the past few quarters. This is likely to have weighed on its margins. However, cost-control efforts are expected to have negated some of this impact.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Vale 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, but that is not the case here.
Earnings ESP: The Earnings ESP for Vale is -6.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: Vale currently has a Zacks Rank #4 (Sell).
Price Performance
In a year, shares of Vale have declined 20.2%, in line with the industry.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines (AEM - Free Report) , scheduled to release second-quarter earnings on Jul 31, currently has an Earnings ESP of +5.93% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Agnico Eagle Mines’ earnings is pegged at 82 cents per share, indicating growth of 26.2% from the prior-year quarter’s actual. Earnings estimates have moved 1.2% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 16.4%.
ATI Inc. (ATI - Free Report) , set to release second-quarter 2024 earnings on Aug 6, presently has an Earnings ESP of +3.50% and a Zacks Rank of 3.
The Zacks Consensus Estimate for ATI’s earnings has moved up 1.8% in the past 60 days. The consensus estimate for ATI’s earnings is pegged at 58 cents per share. It has an average trailing four-quarter earnings surprise of 8.3%.
Avient (AVNT - Free Report) , scheduled to release second-quarter earnings on Aug 6, currently has an Earnings ESP of +0.20% and a Zacks Rank of 3.
The Zacks Consensus Estimate for AVNT's earnings is pegged at 72 cents per share, which indicates a 14.3% increase from the year-ago quarter’s reported figure. AVNT has a trailing four-quarter average surprise of 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.