BHP Billiton Ltd. (BHP) will be reporting its FY11 Annual Results on Wednesday, August 24, 2011.
The current Zacks Consensus Estimate for earnings per share (EPS) is $7.16, representing an annualized growth of 59.73%.
Half Year Ended 31 December 2010 Highlights
BHP Billiton Ltd. has reported strong interim results for half year ended 31 December 2010 with net income (excluding special items) of $10.5 billion, almost double from $6.1 billion in the first half of fiscal 2010. Earnings per ADR, excluding special items, also grew to $1.89 from $1.10 in the first half of fiscal 2009.
Revenues increased 45.8% to $32.35 billion from $22.20 billion in the first half of fiscal 2010. Adjusted EBIT and EBITDA were $14.8 billion $17.3 billion, compared with $8.5 billion and $10.8 billion respectively.
Agreement of Estimate Revisions
In the last 30 days, one analyst increased the company’s earnings per share (EPS) estimates for the full year 2011, while one decreased the same for the full year 2012.
The positive view of the analyst is based on ongoing industrialization in the emerging economies. However, bearish analyst anticipates adverse weather conditions affecting explorations leading to fall in production for most metals and minerals.
Magnitude of Estimate Revisions
Estimates over the last 30 days increased from $6.91 to $7.16 per share for the full-year 2011, representing a year-over-year growth of 59.73%.
Estimate for full year 2012; however, showed a decreasing trend from $9.17 to $8.96 over the last 30 days, representing a year-over-year growth of 25.17%.
Our Take
We believe that BHP Billiton is likely to post encouraging annual results for the full year 2011 based on the commitment toward its long-term growth through key investment strategy. The ongoing industrialization in the emerging markets is expected to improve the demand and price of the company’s products.Moreover, the company has a competitive advantage based on its diversified portfolio of low cost and high quality assets.
BHP Billiton is one of the world’s largest diversified resource companies operating in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising. The company competes directly with its peers, such as Alcoa Inc (AA), Vale S.A (VALE).
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