Yahoo Finance Teck Resources (TECK) to Report Q3 Earnings: What's in Store?
Teck Resources Limited TECK will release third-quarter 2022 results after market close on Oct 27.
Q2 Results
In the last reported quarter, Teck’s earnings and sales beat the respective Zacks Consensus Estimate and also increased year over year. The company has a trailing four-quarter earnings surprise of 13.2%, on average.
Teck Resources Ltd Price and EPS Surprise
Teck Resources Ltd price-eps-surprise | Teck Resources Ltd Quote
Q3 Estimates
The Zacks Consensus Estimate for third-quarter 2022 earnings per share is currently pegged at $1.30, suggesting a decline of 12.7% from the prior-year quarter’s levels. The estimate has moved down 4% over the past 30 days. The estimate for total revenues is pinned at $3.36 billion, indicating a year-over-year increase of 6.6%.
Price Performance
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Teck’s shares have appreciated 18.3% in the past year compared with the industry’s fall of 18.4%.
Factors at Play
Teck Resources recently announced that its third-quarter steel-making coal sales were 5.6 million tons in the September quarter, lower than the volume of 5.9 million reported in the year-ago quarter. The figure came near the lower end of the recently updated guidance of 5.5-5.9 million tons. The third quarter’s performance also marked an 11% sequential drop.
The company had lowered steel-making coal sales guidance for the quarter due to the impact of operational halts at its Elkview steelmaking coal plant following a structural failure of the feed conveyor belt. The recent labor action at Westshore Terminals was also a reason for the downgrade.
TECK also reported that the average realized steelmaking coal price was $304 per ton in third-quarter 2022. The figure marked a 28% increase from $237 per ton in the third quarter of 2021 but was 33% lower than the record-high realized steel-making coal prices of $453 per ton in the second quarter of 2022.
The company had stated that it would record provisional pricing adjustments of a negative $191 million in the third quarter due to the dip in steelmaking coal prices during the quarter.
Sales of Red Dog zinc in concentrate in the July-September quarter are expected to reflect the normal seasonal pattern of Red Dog sales. Red Dog sales for the quarter are expected to be between 215,000 and 240,000 tons.
Meanwhile, the Trail operations had planned major maintenance activities starting in September that will continue till November 2022 in order to extend the operating life of key assets. This is likely to have somewhat impacted production in the third quarter.
Lower copper and zinc prices throughout the quarter are expected to have impacted its top-line performance. Its energy business’s results will likely gain on higher prices and volumes as well as lower unit operating costs reflecting ramp up to two train production rates.
TECK is bearing the brunt of inflationary cost pressures, particularly in diesel prices and transportation costs. Mining equipment, fuel, tires and explosives costs are also high due to price increases for certain commodities such as steel, crude oil and natural gas. These factors will likely have dented the company’s margin in the third quarter.
What Our Zacks Model Indicates
Our proven model does not conclusively predict an earnings beat for Teck Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Teck Resources is -7.78%.
Zacks Rank: TECK currently carries a Zacks Rank of 2.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation ALB, scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. KOP, expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation FMC, scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
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