Teck Resources Q4 Earnings Beat Estimates, Sales Improve Y/Y

Core Viewpoint - Teck Resources Limited reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of 33 cents, exceeding expectations and showing significant improvement from the previous year [1][2]. Financial Performance - Adjusted EPS for 2024 was $1.91, surpassing the Zacks Consensus Estimate of $1.63, while the company reported a restated adjusted EPS of 41 cents for 2023 [10]. - Net sales for Q4 2024 reached $1.99 billion, a 47% year-over-year increase, exceeding the consensus estimate of $1.86 billion [3]. - Gross profit for Q4 was CAD$542 million ($387 million), a remarkable 256.6% increase from the previous year, with a gross margin of 19.5% compared to 8.2% a year ago [3][4]. - The adjusted EBITDA for Q4 was CAD$835 million ($596 million), up 160% year-over-year, with an EBITDA margin of 30% [4]. Segment Performance - The Copper segment's net sales rose 46.6% year-over-year to CAD1.67 billion ($1.19 billion), driven by higher production and prices, with total copper production reaching a record 122,100 tons, an 18.4% increase [5]. - The Zinc segment's net sales increased 58.6% year-over-year to CAD$1.11 billion ($0.79 billion), attributed to improved prices and sales volumes [6]. Cash Flow and Balance Sheet - The company generated a cash flow of CAD$1.29 billion ($0.92 billion) from operating activities in Q4 2024, a 14.4% increase year-over-year [8]. - Cash and cash equivalents at the end of 2024 were CAD$7.59 billion ($5.12 billion), significantly up from CAD$0.7 billion at the end of 2023, largely due to the sale of the steelmaking coal business [8]. Guidance - Teck Resources anticipates copper production between 490,000 and 565,000 tons and zinc production between 525,000 and 575,000 tons for the upcoming period [9]. Stock Performance - The company's shares have increased by 7.5% over the past year, contrasting with a 1.5% decline in the industry [11].