Yahoo Finance Teck Resources (TECK) to Report Q1 Earnings: What's in Store?
Teck Resources Limited TECK will release first-quarter 2023 results on Apr 26, after market close.
Q4 Results
In the last reported quarter, Teck’s revenues and earnings declined year over year. The company missed the Zacks Consensus Estimate on both metrics. The company has a trailing four-quarter negative earnings surprise of 0.45%, on average.
Teck Resources Ltd Price, Consensus and EPS Surprise
Teck Resources Ltd price-consensus-eps-surprise-chart | Teck Resources Ltd Quote
Q1 Estimates
The Zacks Consensus Estimate for first-quarter 2023 earnings is currently pegged at $1.43 per share, suggesting a decline of 39% from the prior-year quarter’s levels. The estimate has moved up 2% over the past 30 days. The estimate for total revenues is pegged at $2.96 billion, indicating a year-over-year slump of 26%.
Price Performance
Image Source: Zacks Investment Research
Teck’s shares have appreciated 10.6% in the past year against the industry’s 23.2% fall.
Factors at Play
Teck Resources recently announced that its first-quarter 2023 steel-making coal sales were 6.2 million tons, higher than 6 million tons reported in the year-ago quarter. The figure was also within the company’s guidance of 6-6.4 million tons. Teck also benefited from strong realized prices in the quarter.
TECK reported that the average realized steelmaking coal price for the quarter under review was $282 per ton, lower than the $357 per ton in the first quarter of 2022. TECK stated that it would record provisional pricing adjustments of positive $25 million in its first quarter 2023 results.
In the first quarter of 2023, gains from higher steelmaking volumes are likely to have been offset by lower metal prices. Nickel prices had gained through the first quarter of 2023 while copper prices fell. This is likely to have reflected on the company’s top-line performance in the first quarter.
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 first quarter.
In February 2023, the company announced the spin-off of the steelmaking coal business and the reorganization of its business to separate into two independent, publicly-listed companies — Teck Metals Corp. and Elk Valley Resources Ltd.
What Our Zacks Model Indicates
Our proven model predicts an earnings beat for Teck Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for TECK is +4.26%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider, as our model shows they too have the right combination of elements to post an earnings beat this quarter:
IAMGOLD Corporation IAG, slated to release earnings on May 11, has an Earnings ESP of +7.69% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for IAG’s first-quarter earnings is pegged at a loss of 4 cents per share.
Freeport-McMoRan Inc. FCX is scheduled to release earnings on Apr 21, has an Earnings ESP of +4.19%. The consensus estimate for FCX’s earnings for the first quarter is currently pegged at 45 cents.
FCX currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Agnico Eagle Mines Limited AEM, which is scheduled to release earnings on Apr 27, has an Earnings ESP of +18.47% and carries a Zacks Rank #3.
The consensus estimate for AEM’s first-quarter earnings is currently pegged at 39 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Iamgold Corporation (IAG) : Free Stock Analysis Report
Teck Resources Ltd (TECK) : Free Stock Analysis Report
