NEW YORK (TheStreet) -- Shares of Vale (VALE) - Get Report are rising 0.17% to $5.78 this afternoon after the company reported 2016 second quarter revenue before the market open today that beat analysts' expectations.
Vale reported revenue of $6.63 billion, increasing $907 million from the first quarter due to higher sales volumes of iron ore fines and higher prices for fines and pellets. Earnings per share for the period was 14 cents per share.
Analysts were looking for the Brazilian mining company to report earnings of 38 cents per share on revenue of $6.58 billion in the second quarter.
The company booked charges of $1.2 billion for a dam spill at the Samarco dam in Brazil. In November 2015 the Samarco dam burst, forming a mudslide that destroyed an entire mining community and killed 19 people.
Vale was partnering with BHP Billiton (BHP) in the venture. The charges paid by Vale and BHP go to cleaning up the town and surrounding area.
The companies may not resume operations at the mine for another two years, Bloomberg reports.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.
You can view the full analysis from the report here: VALE