By early afternoon, shares of the Vancouver-based resources company had unloaded 6.5% to $23.71. Trading volume of 3.4 million exceeded its three-month average daily volume of 2.2 million.
Over its fourth quarter, the copper, coal and zinc miner posted per-share earnings of 40 Canadian cents, 4 cents lower than analysts surveyed by Thomson Reuters had expected. Profitability took a hit due to weak prices for all principal products, particularly coal.
"Prices for all of our key products were down compared to last year, resulting in lower profits and cash flows than in 2012," said CEO Don Lindsay in a statement.Over 2013, coal and copper prices dropped 23% and 8%, respectively, while prices for the quarter were down 11% and 10% compared to the year-ago period. Revenue of C$2.38 billion was 12.8% lower than a year earlier but beat consensus by C$40 million. Must Read: Why Turquoise Hill Resources (TRQ) is Tumbling on Thursday TheStreet Ratings team rates TECK RESOURCES LTD as a Hold with a ratings score of C. The team has this to say about their recommendation: "We rate TECK RESOURCES LTD (TCK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share."
- You can view the full analysis from the report here: TCK Ratings Report