Teck Resources (TECK.B) missed analysts’ estimates in its second quarter, despite posting a strong rise in profit. The Canadian mining company specializes in the extraction, processing, and distribution of lead, zinc, and coal.
Revenue came in at C$2.56 billion in the quarter ended June 30, an increase of 48.8% from C$1.72 billion in the second quarter of 2020.
Meanwhile, net income attributable to shareholders was C$260 million (C$0.48 per share) in Q2 2021, compared with a loss of C$149 million (C$0.28 per share) in Q2 2020.
On an adjusted basis, Teck Resources earned C$339 million (C$0.63 per share) in the second quarter, up 281% from C$89 million (C$0.17 per share) a year ago. This increase is in part due to a reduction of C$147 million in costs related to COVID-19 and C$38 million in inventory write-downs.
The consensus estimate was for adjusted EPS of C$0.65 on revenue of C$2.67 billion, according to financial data firm Refinitiv.
Waste Connections’ President and CEO Don Lindsay said, “Solid performance at our operations and key projects against the backdrop of improving market conditions made for a very positive second quarter of 2021, with adjusted profit up 281% compared to the same period last year. We managed through the most acute COVID-19 conditions in Chile since the start of the pandemic while safely achieving our best quarterly progress to date on our flagship QB2 copper growth project. The COVID-19 situation in Chile has improved in recent weeks and vaccination rates at QB2 are high, which is contributing to strong momentum on the project heading into the third quarter. Our Neptune port upgrade project is operational and ramping up to full capacity, and the new facility is being integrated into our logistics chain, which will reduce costs, enhance flexibility and improve performance.” (See Teck Resources stock charts on TipRanks)
JP Morgan analyst Michael Glick maintained a Buy rating on TECK.B while raising its price target to $29.00 (C$36.00). This implies 33.8% upside potential.
Overall, the consensus on the Street is that TECK.B is a Moderate Buy based on 10 Buys and 4 Holds. The average Teck Resources price target of C$34.64 implies upside potential of about 27% to current levels.
TipRanks’ Smart Score
TECK.B scores a 7 out of 10 on the TipRanks Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.
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