) is set to report fourth-quarter 2013 results on Feb 26, after
the market closes. Last quarter, the company posted a 6.25%
positive surprise. Let's see how things are shaping up for this
Factors to Consider This Quarter
Vale reported strong earnings for the third quarter of 2013,
with underlying earnings of 72 cents per ADR, up 59% year over
year. Revenues increased 11% year over year to $13 billion. In
the reported quarter, the company delivered strong production for
most of its commodities. Iron ore shipments of 83.6 million tons
were the third highest in a quarter in Vale's history.
In the to-be-reported quarter, Vale has taken many initiatives
to streamline its asset portfolio and focus on the more
productive ones. Moreover, the company's initiatives to reduce
its costs are paying off.
Our proven model shows that Vale is likely to beat earnings
since it has the appropriate combination of the following two key
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +17.19%.
This indicates a likely positive earnings surprise.
Vale's Zacks Rank #3 (Hold)increases the predictive power of ESP.
The combination of its Zacks Rank and Earnings ESP assures us of
a positive earnings surprise in the fourth quarter.
Stocks with Zacks Ranks of #1, 2 or 3 have significantly
higher chances of beating the earnings estimate. The Sell-rated
stocks (#4 and 5) should never be considered going into an
Other Stocks to Consider
Here are some other companies in the basic materials sector
you may want to consider, as our model shows they have the right
combination of elements to post an earnings beat this
Hecla Mining Co.
), with Earnings ESP of +100.00% and a Zacks Rank #3.
Alliance Resource Partners LP
), with Earnings ESP of +0.58% and a Zacks Rank #3.
Coeur Mining, Inc.
), with Earnings ESP of +4.35% and a Zacks Rank #3.
ALLIANCE RES (ARLP): Free Stock Analysis
COEUR DALENE MI (CDE): Free Stock Analysis
HECLA MINING (HL): Free Stock Analysis Report
VALE SA (VALE): Free Stock Analysis Report
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