Vale Increases Sales but Misses Estimates on Earnings
Vale (NYS: VALE) reported earnings on Feb. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Vale beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins shrank across the board.
Vale tallied revenue of $15.71 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $14.43 billion on the same basis. GAAP reported sales were 63% higher than the prior-year quarter's $11.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.93. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.01 per share on the same basis. GAAP EPS of $1.37 for Q4 were 40% higher than the prior-year quarter's $0.98 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.2%, 120 basis points worse than the prior-year quarter. Operating margin was 45.0%, 130 basis points worse than the prior-year quarter. Net margin was 38.9%, 760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $13.65 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $58.13 billion. The average EPS estimate is $3.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,466 members out of 6,622 rating the stock outperform, and 156 members rating it underperform. Among 1,465 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,431 give Vale a green thumbs-up, and 34 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vale is outperform, with an average price target of $34.30.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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