For the second quarter Vale reported earnings of 28 cents a share, missing the Capital IQ Consensus Estimate of 45 cents share by 17 cents. Revenue fell -7.1% from the year-ago quarter to $9.9 billion. Analysts expected revenue of $10.63 billion for the quarter.
The company reported lower-than-expected earnings and revenue due to low iron ore prices. Vale produced 79.4 million metric tons of iron ore in the quarter, an increase of 13% from the year-ago quarter. The average sale price of iron ore for the quarter was $81.03 a ton, down 18% year-over-year.
TheStreet Ratings team rates VALE SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) 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 good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."