Seeking Alpha

Bernstein cuts Vale's earnings outlook as rising costs seen

  • Bernstein analyst Paul Gait lowers his FY 2014 earnings outlook for Vale (VALE +0.7%) to $2.15/share, down from his prior estimate of $2.55, after Q2 earnings missed expectations.
  • Although revenue should grow in H2 on higher production and possible stronger iron ore prices, costs should increase too, Bernstein says while maintaining its thesis that supports Vale’s high-quality assets and its growing presence in base metals.
  • The firm expresses some concern that Vale's ambitions to regain the market share it has lost in the iron ore market over the past decade "could translate into a relaxation in the company’s capital discipline."
Comments (1)
  • Mark Withers
    , contributor
    Comments (6) | Send Message
     
    Yeah happens every time VALE goes up....just keeps happening.
    18 Aug 2014, 04:12 PM Reply Like
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