Rio Tinto (NYSE:RIO) Announces Earnings Results, Misses Expectations By $1.98 EPS

Rio Tinto (NYSE:RIO) issued its quarterly earnings data on Wednesday. The mining company reported $2.11 earnings per share for the quarter, missing the consensus estimate of $4.09 by ($1.98), FiscalAI reports. The company had revenue of $15.51 billion for the quarter, compared to analysts’ expectations of $31.62 billion.

Rio Tinto Stock Performance

Shares of Rio Tinto stock traded up $1.99 on Wednesday, hitting $93.63. The company had a trading volume of 2,646,843 shares, compared to its average volume of 3,215,216. Rio Tinto has a twelve month low of $58.40 and a twelve month high of $112.58. The company has a quick ratio of 0.98, a current ratio of 1.44 and a debt-to-equity ratio of 0.33. The stock has a 50-day moving average of $98.03 and a 200-day moving average of $95.95.

Trending Headlines about Rio Tinto

Here are the key news stories impacting Rio Tinto this week:

• Positive Sentiment: Goldman Sachs upgraded Rio Tinto from “neutral” to “buy,” improving the analyst outlook for the stock and reinforcing the bullish reaction to the company’s results. TickerReport Goldman Sachs upgrade
• Positive Sentiment: First-half underlying EBITDA rose 28% and free cash flow increased 75%. Management attributed the improvement to stronger commodity prices, better operating performance and higher production, supporting Rio Tinto’s ability to fund investment and return cash to shareholders. Rio Tinto performance update
• Positive Sentiment: First-half profit climbed 47% and the interim dividend increased 43% to US$2.11. The earnings and dividend gains exceeded expectations in several reports, making the stock more attractive to income-oriented investors. Rio Tinto first-half earnings
• Positive Sentiment: Copper is becoming a more important earnings driver. Rio Tinto said copper, aluminum and lithium now contribute more than half of its portfolio, while demand from artificial-intelligence data centers is expected to support long-term metals consumption. Rio Tinto and data-center demand
• Neutral Sentiment: Rio Tinto’s lithium strategy is being compared favorably with Albemarle’s, but the investment case remains sensitive to lithium prices, project execution and the pace of electric-vehicle and energy-storage demand. ALB versus RIO lithium comparison
• Negative Sentiment: Management continues to address safety and operational challenges. Rio Tinto also indicated it is not planning additional U.S. investment to obtain tariff-related benefits, which could limit near-term expansion opportunities in the country. Rio Tinto investment plans

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. The Goldman Sachs Group raised shares of Rio Tinto from a “neutral” rating to a “buy” rating in a research report on Wednesday. Sanford C. Bernstein upped their target price on Rio Tinto from $82.00 to $83.50 and gave the company an “outperform” rating in a research note on Monday, April 27th. Bank of America cut Rio Tinto from a “buy” rating to a “neutral” rating in a report on Friday, May 22nd. Citigroup restated a “neutral” rating on shares of Rio Tinto in a research note on Thursday, July 9th. Finally, Zacks Research cut Rio Tinto from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $101.75.

Hedge Funds Weigh In On Rio Tinto

Hedge funds have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership acquired a new stake in Rio Tinto in the 3rd quarter valued at $94,737,000. Deutsche Bank AG increased its position in Rio Tinto by 102.6% during the 4th quarter. Deutsche Bank AG now owns 2,216,935 shares of the mining company’s stock worth $177,421,000 after buying an additional 1,122,667 shares during the period. Bank of America Corp DE boosted its position in shares of Rio Tinto by 31.9% in the third quarter. Bank of America Corp DE now owns 3,157,545 shares of the mining company’s stock valued at $208,430,000 after acquiring an additional 763,786 shares during the period. National Bank of Canada FI raised its stake in Rio Tinto by 878.3% in the 3rd quarter. National Bank of Canada FI now owns 824,092 shares of the mining company’s stock worth $54,396,000 after purchasing an additional 739,854 shares in the last quarter. Finally, Schonfeld Strategic Advisors LLC bought a new stake in shares of Rio Tinto in the third quarter valued at approximately $37,115,000. 19.33% of the stock is owned by institutional investors.

Rio Tinto Company Profile

Rio Tinto is a global mining and metals company that explores for, mines, processes and markets a wide range of commodities. Its principal products include iron ore, aluminum, copper, diamonds and various other minerals and industrial materials. The company’s activities span the full value chain from exploration and project development to mining, processing, smelting and refining, supplying raw materials to industries such as steelmaking, automotive, packaging, electronics and construction.

The origins of Rio Tinto date back to mining operations in the Rio Tinto region of Spain in the 19th century, and the group has since grown into a multinational enterprise.