Teck Resources Limited TECK reported fourth-quarter 2024 adjusted earnings per share (EPS) of 33 cents, beating the Zacks Consensus Estimate of 22 cents. The bottom line marked a substantial improvement from the earnings per share of 3 cents in the year-ago quarter. The last year’s quarter’s earnings has been adjusted by Teck Resources to reflect the sale of the steelmaking coal business or Elk Valley Resources (“EVR”) in the third quarter of 2024. Including the business, earnings in the fourth quarter of 2023 was previously at $1.02.

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The increase was primarily led by higher base metal prices and increased copper and zinc in concentrate sales volumes.

Including one-time items, the company reported EPS of 56 cents in the fourth quarter of 2024 compared with the year-ago quarter’s EPS of 68 cents.

TECK’s Q4 Sales Rise Y/Y, Margins Improve

Net sales amounted to $1.99 billion, indicating a 47% year-over-year improvement. The top line surpassed the consensus estimate of $1.86 billion.

The gross profit was CAD$542 million ($387 million), skyrocketing 256.6% from the year-ago quarter. The gross margin was 19.5% compared with the year-ago quarter’s 8.2%.

The adjusted EBITDA was CAD$835 million ($596 million), which soared 160% from the year-earlier period. The EBITDA margin was 30% in the quarter under review compared with the year-ago quarter’s 17.4%.

Teck Resources’ Q4 Segmental Performances

The Copper segment’s net sales improved 46.6% year over year to CAD1.67 billion ($1.19 billion), attributed to higher production and copper prices.

Total copper production was a record 122,100 tons, 18.4% higher than the fourth quarter of 2024. Copper in concentrate production from QB was 60,700 tons in the fourth quarter, reflecting an ongoing ramp-up from 52,500 tons in the third quarter of 2024.

The segment’s gross profit skyrocketed 269% year over year to CAD$299 million ($214 million), attributed to higher copper prices and sales volume, offset by the depreciation of QB assets.

The Zinc segment’s net sales jumped 58.6% year over year to CAD$1.11 billion ($0.79 billion) on improved zinc prices and sales volumes. 

The segment’s gross profit marked a year-over-year surge of 242% to CAD$243 million ($176 million). This was attributed to higher zinc prices, lower zinc treatment charges, and substantially advanced silver and lead by-product revenues.

TECK’s Cash Flow & Balance Sheet

Teck Resources generated a cash flow of CAD$1.29 billion ($0.92 billion) from operating activities in the fourth quarter of 2024, up 14.4% year over year. The company had cash and cash equivalents of CAD$7.59 billion ($5.12 billion) at the end of 2024 compared with CAD$0.7 billion at the end of 2023. The upside was driven by the sale of EVR in 2024.

Teck Resources’ Guidance

The company’s copper production is anticipated to be 490,000-565,000 tons. The zinc production is projected between 525,000 tons and 575,000 tons. Refined zinc is estimated between 190,000 tons and 230,000 tons.

TECK’s FY24 Results

Teck Resources reported an adjusted EPS of $1.91 in 2024, beating the Zacks Consensus Estimate of $1.63. The company provided restated adjusted earnings per share of  41 cents for 2023.

Including one-time items, the company reported an EPS of 57 cents in 2024 compared with $3.40 in 2023.

Net sales amounted to $6.48 billion in 2024, indicating a 40% year-over-year increase. The top line beat the Zacks Consensus Estimate of $6.31 billion.

Teck Resources Stock’s Price Performance

The company’s shares have gained 7.5% in the past year against the industry’s 1.5% decline.

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TECK’s Zacks Rank

Teck Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Teck Resources’ Peer Performances

Reliance, Inc. RS recorded earnings of $2.22 per share, down from $4.73 a year ago. It lagged the Zacks Consensus Estimate of $2.74.

The company recorded net sales of $3.13 billion, down 6.3% year over year. The top line beat the Zacks Consensus Estimate of $3,079 million. RS benefited from higher shipments amid headwinds from weaker metals pricing in the quarter.

Nexa Resources S.A. NEXA reported a fourth-quarter 2024 adjusted loss per share of $1.00, missing the Zacks Consensus Estimate of earnings of 35 cents. NEXA incurred a loss of 1 cent in the year-ago quarter. 

Nexa Resources posted sales of $740.9 million, beating the Zacks Consensus Estimate of $700 million. It reported sales of $630 million in the year-ago quarter.

Cameco Corporation CCJ posted fourth-quarter 2024 adjusted earnings per share of 26 cents, beating the Zacks Consensus Estimate of earnings of 23 cents. CCJ reported an EPS of 15 cents in the year-ago quarter.

CCJ posted sales of $846 million, beating the Zacks Consensus Estimate of $753 million. It reported sales of $620 million in the year-ago quarter.

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