BHP Billiton's (BHP) Fiscal '17 Earnings And Revenues Up Y/Y

Mining giant, BHP Billiton (LON:BLT) Limited (NYSE:BHP) reported robust financial results for fiscal 2017 (ended Jun 30, 2017).

In the last month, shares of this Zacks Rank #3 (Hold) stock yielded a return of 5.2%, outperforming the industry's gain of 3.7%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings: For fiscal 2017, earnings per American Depositary Share (ADS) came in at roughly $1.27 per share, remarkably up from 23 cents recorded in the year-ago period.

Revenues: Revenues for fiscal 2017 totaled $38.3 billion, up from $30.9 billion recorded in the prior-year period.

Margin: Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $20.3 billion for fiscal 2017, marking a significant increase of 64.5% year over year.

Balance Sheet: Cash and cash equivalents as of Jun 30, 2017 came in at $14.2 billion, up from $10.3 billion at the end of fiscal 2016. Interest-bearing liabilities summed $29.2 billion, down from $31.8 billion as of Jun 30, 2016.

Cash Flow: In fiscal 2017, the company generated $19.4 billion cash from operations, up 52.9% year over year. Capital and exploration expenditure was $5.2 billion, down from $7.7 billion incurred in the year-earlier period.

During the reported period, the company paid dividends worth $2.9 billion compared with $4.1 billion paid at the end of fiscal 2016.

Outlook: BHP Billiton aims to boost financial fundamentals in the near term on the back of improved mining and exploration activities, efficient operations, along with strategic capital deployment programs.

Our Take

Gradual recovery of iron-ore prices is likely to benefit major mining companies like BHP Billiton, Rio Tinto (LON:RIO) plc (NYSE:RIO) , Vale S.A. (NYSE:VALE) and Cliffs Natural Resources Inc. (NYSE:CLF) . In the last three months, prices of this major steel making component were up nearly 20.1% to $72.6 per ton as of Aug 21, 2017. The upside can be attributed to the release of Chinese manufacturing data, which revealed expansion of the country’s steel industry.

Zacks' 10-Minute Stock-Picking Secret

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.

Learn the secret >>