VANCOUVER - Teck Resources (TSX:TECKa) Limited (NYSE:TECK) reported a slight beat on adjusted earnings per share (EPS) for the fourth quarter, while revenue fell short of analyst expectations. The mining giant posted an adjusted EPS of Cdn$1.40, Cdn$0.02 higher than the analyst estimate of Cdn$1.38. However, revenue for the quarter was Cdn$4.11 billion, just shy of the consensus estimate of Cdn$4.14 billion.
Despite the revenue miss, Teck Resources' shares climbed 2% as the market responded positively to the company's earnings performance. The driver behind the stock's movement was the higher than anticipated EPS.
Jonathan Price, President and CEO, highlighted the strong quarter, stating, "We had strong fourth quarter performance across our business, generating adjusted EBITDA of $1.7 billion in the quarter." He also emphasized the company's strategic positioning for 2024, with plans to separate its base metals and steelmaking coal businesses and a significant increase in copper production.
The company's fourth-quarter revenue of Cdn$4.11 billion represents a significant increase from the Cdn$3.14 billion reported in the same quarter last year, marking a YoY increase. The adjusted profit attributable to shareholders was Cdn$735 million, or Cdn$1.41 per share, for the fourth quarter. This compares to Cdn$558 million, or Cdn$1.09 per share, in the prior-year period.
Teck Resources also announced a new share buyback program of up to Cdn$500 million and confirmed the payment of its quarterly base dividend of Cdn$0.125 per share, which will be payable on March 28, 2024, to shareholders of record on March 15, 2024.
The company's record quarterly copper production and robust prices for steelmaking coal and copper were significant contributors to the quarter's success. Additionally, Teck Resources reported strong sales volumes for steelmaking coal, with realized prices averaging US$270 per tonne.
Looking ahead, Teck Resources provided guidance for the 2024 fiscal year, maintaining its previously disclosed annual production guidance. The company expects to continue its focus on copper growth, with the QB2 project's ramp-up expected to complete by the end of the second quarter of 2024.
Investors will be watching closely as Teck Resources navigates the planned separation of its business units and the advancement of its copper growth strategy in the coming year.
InvestingPro Insights
Teck Resources Limited (NYSE:TECK) has recently caught the attention of investors with its latest earnings report. As the market digests the mixed results, with a slight beat on adjusted EPS and a miss on revenue expectations, it's important to consider additional metrics and insights that can provide a deeper understanding of the company's performance and potential.
InvestingPro Data shows that Teck Resources has a market capitalization of $20.09 billion and a Price/Earnings (P/E) ratio of 12.41, which adjusts to 14.55 on a last twelve months basis as of Q3 2023. This suggests a reasonable valuation relative to earnings. The company's Price/Book ratio as of the same period stands at 1.0, indicating that the stock may be trading at a value close to its book value.
Despite a revenue growth decline of 21.4% over the last twelve months as of Q3 2023, Teck Resources has maintained a Gross Profit Margin of 36.04%, reflecting a solid profitability from its core operations. Additionally, the company's Operating Income Margin is notable at 24.43%, which is indicative of efficient management and strong operational execution.
InvestingPro Tips reveal that while 7 analysts have revised their earnings downwards for the upcoming period, the stock is noted for its low price volatility. This could mean that Teck Resources offers a level of stability in an investor's portfolio. Moreover, the company's commitment to shareholder value is evident through its history of maintaining dividend payments for 14 consecutive years and the recent announcement of a new share buyback program.
For those seeking further insights, there are additional InvestingPro Tips available, including predictions of profitability for the current year and the company's performance over the last twelve months. To explore these insights and more, visit https://www.investing.com/pro/TECK and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Teck Resources continues to navigate the commodities market and advances its strategic initiatives, including the separation of its business units and the focus on copper growth, these InvestingPro metrics and tips can offer valuable context for investors making informed decisions.
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