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Yamana Gold (AUY) to Report Q2 Earnings: What's in Store?
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Yamana Gold Inc. is scheduled to release second-quarter 2020 results on Jul 23, after the closing bell.
Q2 Estimates
The Zacks Consensus Estimate for the second-quarter earnings per share is currently pegged at 3 cents, suggesting an improvement of 50% from the prior-year quarter. The estimate has remained stable over the past 30 days.
A Sneak Peak at Q1 Results
In the last reported quarter, Yamana Gold delivered a year-over-year improvement in earnings despite a decline in revenues. The company delivered a earnings surprise of 66.7% in the first quarter. It has a trailing four-quarter earnings surprise of 72.9%, on average.
Yamana Gold produced 164,141 ounces of gold and 2.01 million ounces of silver in second-quarter 2020. The company produced total 183,582 gold equivalent ounces (GEO) during the quarter. Overall production exceeded planned production guidance driven by strong performances across Jacobina, El Peñón, Canadian Malartic, and Minera Florida mines during the quarter to be reported.
Gold prices have gained 18% so far this year primarily driven by apprehensions regarding the impact of the coronavirus pandemic on the global economy. Low interest rates, renewed U.S.-China tensions and the civil unrest in the United States have also been pushing prices north. Thus, the combination of higher gold prices and better-than-expected production levels might have contributed to Yamana Gold’s second-quarter performance.
However, the company has been incurring COVID-19 related costs such as temporary suspension and standby costs, including those associated with placing certain mines in care and maintenance and subsequent ramp-up of those operations, and the underutilization of labor and contractors in relation to the pre-COVID mine plans. It has also been witnessing incremental costs related to additional personal protective equipment acquisitions, higher transportation costs, and overtime costs. These costs are likely to get reflected in the company’s second-quarter results.
Price Performance
The stock soared 96.8% in a year’s time compared with the industry’s rally of 51.8%.
What the Zacks Model Says
Our proven model doesn’t conclusively predict an earnings beat for Yamana Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Yamana Gold is -25.00%.
Zacks Rank: Yamana Gold currently carries a Zacks Rank #3.
Few Stocks Likely to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
New Gold Inc. (NGD - Free Report) has an Earnings ESP of +249.99% and a Zacks Rank #2.
Teck Resources Ltd (TECK - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Yamana Gold (AUY) to Report Q2 Earnings: What's in Store?
Yamana Gold Inc. is scheduled to release second-quarter 2020 results on Jul 23, after the closing bell.
Q2 Estimates
The Zacks Consensus Estimate for the second-quarter earnings per share is currently pegged at 3 cents, suggesting an improvement of 50% from the prior-year quarter. The estimate has remained stable over the past 30 days.
A Sneak Peak at Q1 Results
In the last reported quarter, Yamana Gold delivered a year-over-year improvement in earnings despite a decline in revenues. The company delivered a earnings surprise of 66.7% in the first quarter. It has a trailing four-quarter earnings surprise of 72.9%, on average.
Yamana Gold Inc. Price and EPS Surprise
Yamana Gold Inc. price-eps-surprise | Yamana Gold Inc. Quote
Factors to Note
Yamana Gold produced 164,141 ounces of gold and 2.01 million ounces of silver in second-quarter 2020. The company produced total 183,582 gold equivalent ounces (GEO) during the quarter. Overall production exceeded planned production guidance driven by strong performances across Jacobina, El Peñón, Canadian Malartic, and Minera Florida mines during the quarter to be reported.
Gold prices have gained 18% so far this year primarily driven by apprehensions regarding the impact of the coronavirus pandemic on the global economy. Low interest rates, renewed U.S.-China tensions and the civil unrest in the United States have also been pushing prices north. Thus, the combination of higher gold prices and better-than-expected production levels might have contributed to Yamana Gold’s second-quarter performance.
However, the company has been incurring COVID-19 related costs such as temporary suspension and standby costs, including those associated with placing certain mines in care and maintenance and subsequent ramp-up of those operations, and the underutilization of labor and contractors in relation to the pre-COVID mine plans. It has also been witnessing incremental costs related to additional personal protective equipment acquisitions, higher transportation costs, and overtime costs. These costs are likely to get reflected in the company’s second-quarter results.
Price Performance
The stock soared 96.8% in a year’s time compared with the industry’s rally of 51.8%.
What the Zacks Model Says
Our proven model doesn’t conclusively predict an earnings beat for Yamana Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Yamana Gold is -25.00%.
Zacks Rank: Yamana Gold currently carries a Zacks Rank #3.
Few Stocks Likely to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
U.S. Silica Holdings, Inc. (SLCA - Free Report) has an Earnings ESP of +11.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
New Gold Inc. (NGD - Free Report) has an Earnings ESP of +249.99% and a Zacks Rank #2.
Teck Resources Ltd (TECK - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>