Teck Resources (NYSE:TECK) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• Teck Resources reported earnings of $0.27 EPS for the quarter, exceeding estimates by $0.07, while revenue was below expectations at $1.49 billion compared to the projected $2.25 billion.
• The company's stock fell 6.1% during trading, closing at $33.00, despite the increase in its quarterly dividend to $0.0918 per share.
• Analysts are cautiously optimistic, with a consensus rating of "Hold" from twelve research firms and a target price of $61.63 for Teck Resources.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK announced its quarterly earnings results on Thursday. The basic materials company reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.07, Zacks reports. Teck Resources had a net margin of 2.51% and a return on equity of 3.87%. The firm had revenue of $1.49 billion during the quarter, compared to analysts' expectations of $2.25 billion. During the same period in the prior year, the company posted $0.79 EPS. The company's revenue was up 12.3% on a year-over-year basis.

Teck Resources Stock Down 6.1%

Shares of NYSE:TECK traded down $2.13 during trading hours on Friday, hitting $33.00. The company's stock had a trading volume of 12,487,636 shares, compared to its average volume of 4,345,001. The company has a market capitalization of $15.94 billion, a price-to-earnings ratio of 86.83, a P/E/G ratio of 0.56 and a beta of 0.80. Teck Resources has a 52 week low of $28.32 and a 52 week high of $54.13. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.36 and a quick ratio of 2.57. The firm's fifty day moving average price is $38.17 and its 200 day moving average price is $38.58.

Teck Resources Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 15th will be issued a dividend of $0.0918 per share. This is a positive change from Teck Resources's previous quarterly dividend of $0.09. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.37 dividend on an annualized basis and a yield of 1.11%. Teck Resources's dividend payout ratio (DPR) is presently 94.74%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on TECK. Stifel Canada raised shares of Teck Resources to a "hold" rating in a research report on Tuesday, July 8th. CIBC downgraded shares of Teck Resources from a "sector outperform" rating to a "neutral" rating in a report on Friday. Desjardins downgraded shares of Teck Resources from a "buy" rating to a "hold" rating in a report on Friday, July 18th. Morgan Stanley downgraded shares of Teck Resources from an "overweight" rating to an "equal weight" rating and raised their price objective for the stock from $42.00 to $44.00 in a report on Tuesday, July 15th. Finally, Wall Street Zen upgraded shares of Teck Resources from a "sell" rating to a "hold" rating in a report on Saturday. Twelve research analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Teck Resources currently has a consensus rating of "Hold" and a consensus target price of $61.63.

Hedge Funds Weigh In On Teck Resources

Several large investors have recently made changes to their positions in the company. Jones Financial Companies Lllp boosted its stake in Teck Resources by 453.0% during the first quarter. Jones Financial Companies Lllp now owns 9,721 shares of the basic materials company's stock worth $354,000 after buying an additional 7,963 shares during the period. AQR Capital Management LLC boosted its stake in shares of Teck Resources by 11.1% in the first quarter. AQR Capital Management LLC now owns 34,705 shares of the basic materials company's stock valued at $1,264,000 after purchasing an additional 3,458 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Teck Resources by 1.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 465,861 shares of the basic materials company's stock valued at $16,971,000 after purchasing an additional 8,146 shares during the period. 78.06% of the stock is currently owned by institutional investors and hedge funds.

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen.

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