Mining giant BHP Billiton Limited (BHP) said late Tuesday that its first-half profit rose 134% from the previous year, helped by a one-time gain and lower one-time costs.
The Melbourne, Australia-based company reported first half net profits of $6.1 billion U.S., compared with $2.6 billion U.S. in the prior year. Excluding one-time items, though, net profit actually fell 7% from last year, to $5.7 billion U.S.
On average, Wall Street analysts expected a smaller adjusted profit of $5.1 billion U.S. for the first half.
BHP offered a somewhat cautious outlook, though, saying "It appears that stimulus measures that supported the recovery have not fully addressed structural issues such as weak labor markets and excess production capacity in developed economies."
BHP Billiton shares fell 86 cents U.S., or 1.2%, in premarket trading Wednesday.
The Bottom Line
Some experts recently removed shares of BHP from their recommended lists back on Oct. 1, when the stock was trading at $66.01 U.S. The company has a dividend yield of 2.30%, based on last night's closing stock price of $71.16 U.S.
The stock has technical support in the $65 U.S. price area. If the shares can firm up, there could be overhead resistance around the $75 U.S. price level. But many experts would remain on the sidelines for now.
BHP Billiton Limited (BHP) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
