Mining giant Rio Tinto (RIO) is set to report its second-half earnings results for 2024 on February 19 before the market opens. Analysts are expecting earnings per share to come in at $3.24 on revenue of $27.36 billion. This equates to 10.6% and 1.2% year-over-year increases, respectively, according to TipRanks’ data.
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This is ideal because earnings per share should grow faster than revenue as this demonstrates a high degree of operating and financial leverage in the business. However, it is also worth noting that RIO has a choppy record when it comes to beating earnings estimates, as it has only done so twice during the past four fiscal halves.
Mining Operations Resume after Tropical Cyclone
Separately, Rio Tinto’s mining operations in Western Australia’s Pilbara region are back to normal after a tropical cyclone passed through the area. Thankfully, all employees are safe and unharmed. The cyclone, named Zelia, crossed the coast on February 14, 2025, and caused temporary disruptions to the company’s port, rail, and mine operations.
Operations resumed quickly, with ship loading restarting at Cape Lambert and Dampier Ports on February 15. However, the region has experienced several weather-related disruptions already this year, with Dampier Port closed for 10 days and Cape Lambert closed for 13 days due to multiple tropical cyclones. Although Rio Tinto’s iron ore shipment guidance for 2025 remains unchanged (between 323 and 338 million tonnes), it will be interesting to see how the company’s overall performance in 2025 will be impacted as weather-related incidents continue to be a risk factor for the company.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a modest 3.74% price move in either direction. This estimate is derived from the $62.50 strike price, with call options priced at $1.67 and put options at $0.70.
Is RIO Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RIO stock based on four Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 3% rally in its share price over the past year, the average RIO price target of $82.06 per share implies 29.5% upside potential.
