What's Going On With Mining Giant Rio Tinto Shares Today?
Portfolio Pulse from Lekha Gupta
Rio Tinto PLC (NYSE:RIO) shares fell in premarket trading after reporting a 3% decline in sales revenue to $54.0 billion for FY23, slightly beating consensus but with a 12% decrease in underlying EPS to $7.25, missing expectations. Production increased in Pilbara iron ore and aluminium, but underlying EBITDA and operating cash flow declined due to lower aluminium pricing. The company announced a major renewable power purchase agreement in Australia and expects a production uplift and significant capital investment in the coming years.
February 21, 2024 | 12:52 pm
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Rio Tinto reported a slight beat on FY23 sales revenue but missed EPS expectations, announced a significant renewable power purchase agreement, and expects continued investment and production growth.
The mixed financial results with a slight revenue beat but an EPS miss may have a neutral to slightly negative short-term impact on RIO's stock price. However, the announcement of a significant renewable power purchase agreement and positive production and investment outlook could offset negative sentiment and support the stock in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100