On Mar 24, 2014, we issued an updated research report on
BHP Billiton Limited
). The company delivered strong earnings per American Depositary
Share (ADS) in the first half of fiscal 2014, which increased 83%
year over year to $1.52. Half-yearly revenues of $33.9 billion
were also up 5.9% from the first half of fiscal 2013.
Additionally, BHP Billiton reported improved year-over-year
production volumes for the first half of 2014. The company
witnessed a rise in production of copper, iron ore, metallurgical
coal, alumina, aluminium, manganese alloy and nickel. However,
production of petroleum products and energy coal declined.
The company has been endeavoring to increase shareholders
returns. In the past 10 years, BHP Billiton has returned $62
billion through share buybacks and dividend, roughly 50% of the
underlying earnings over the same period. Moreover, the company
intends to reconsider a progressive dividend policy from fiscal
Moreover, BHP has a number of projects in the pipeline, which
are in different stages of development. While 6 projects
delivered their first production in the first half of fiscal
2014, 10 projects are still in the pipeline, most of which are
expected to start production before fiscal 2015-end.
Expected improvement in the future results led to positive
earnings estimate revisions for fiscal 2014 and fiscal 2015. In
the last 60 days, the Zacks Consensus Estimate for fiscal 2014
and 2015 improved 4.3% and 3.2% to $5.34 and $5.49,
Key Picks from the Sector
With a current market capitalization of $176.5 billion, BHP
Billiton holds a Zacks Rank #2 (Buy). Other stocks worth a look
in the industry include
General Moly, Inc.
Avalon Rare Metals Inc.
). While General Moly sports a Zacks Rank #1 (Strong Buy),
Augusta Resource and Avalon Rare Metals hold the same Zacks Rank
as BHP Billiton.
AVALON RARE MTL (AVL): Get Free Report
AUGUSTA RSRC CP (AZC): Get Free Report
BHP BILLITN LTD (BHP): Free Stock Analysis
GENERAL MOLY IN (GMO): Free Stock Analysis
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