The 10-second takeaway
For the quarter ended March 31 (Q1), Vale missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped. GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins expanded, net margins shrank.
Vale chalked up revenue of $10.94 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $11.38 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The nine earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. Non-GAAP EPS of $0.62 for Q1 were 8.8% lower than the prior-year quarter's $0.68 per share. GAAP EPS of $0.59 for Q1 were 17% lower than the prior-year quarter's $0.71 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 47.5%, 120 basis points worse than the prior-year quarter. Operating margin was 38.0%, 300 basis points better than the prior-year quarter. Net margin was 28.4%, 590 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $12.38 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $49.27 billion. The average EPS estimate is $2.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,402 members out of 6,571 rating the stock outperform, and 169 members rating it underperform. Among 1,002 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 960 give Vale a green thumbs-up, and 42 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 $22.50.
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