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Metal Stocks Reporting Earnings on Jul 29: SWC, URG
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Last year, metal companies saw millions being wiped out due to the slowdown in China and a subsequent crash in commodity prices. In the wake of falling demand, the only key to stay afloat was to control costs. Saddled with debt, a few companies had to divest underperforming assets.
This year, the industry seems to have staged a comeback. Alcoa, Inc. (AA - Free Report) kick-started the second-quarter earnings season in style, beating expectations despite depressed aluminium prices. Alcoa remained optimistic about its forecast of demand outpacing supply in 2016. This should bode well for future aluminum prices. The company’s positive outlook for the automotive and construction sectors augurs well for the steel industry.
As it is, gold and silver are major movers this year, thanks to the slowdown in China, volatile equity markets due to Brexit and a dovish Fed and introduction of negative interest rates by several central banks (including Japan). Iron-ore prices have also been on an upward trajectory, triggered by the “big three” producers -- BHP Billiton Ltd. (BHP - Free Report) , Rio Tinto plc (RIO - Free Report) , and Vale S.A. (VALE - Free Report) -- trimming their full-year iron production guidance. In addition, fresh stimulus measures introduced by the Chinese government to boost steel production led to the upswing, implying a revival in the country’s property construction sector.
Copper prices have also gained on the back of a huge jump in imports in China – the top consumer. Lately, Brexit fears also supported prices. Recently, expectations of a fresh economic stimulus in Europe and China buoyed demand for the metal.
As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. The 35% of the companies in this sector that have reported so far put up a 3.8% fall in earnings on the scoreboard. Considering the companies that are yet to report, the sector’s earnings are expected to drop 12.2% in the quarter.
However, it is not the only sector to suffer such a fate this quarter. Earnings growth is anticipated to be in the negative territory for 9 of the 16 Zacks sectors, with Energy being the biggest laggard. Looking at the projected estimates for the quarter, total S&P 500 earnings are expected to be down 3.5% on the back of a 0.4% dip in revenues. It seems the quarter is on track to be the 5th in a row to record an earnings decline (read more: Q2 Earnings: Modest Improvement Continues?).
Let’s see what’s in store for these miners that are set to report quarterly numbers on Jul 29.
Stillwater Mining Company , miner of platinum, palladium and associated metals, is geared up to report its second-quarter results before the market opens on Jul 29, 2016.
Last quarter, the company delivered a negative earnings surprise of 14.29%. The company has missed the Zacks Consensus Estimate in 3 of the last 4 quarters, with an average negative earnings surprise of 15.18%.
Stillwater Mining should benefit from operational cost reductions. The company’s Earnings ESP of +0.00% and a Zacks Rank #3 (Buy) make surprise prediction difficult.
UR-Energy Inc. (URG - Free Report) is engaged in the acquisition, exploration, development, and operation of uranium mineral properties, and will report second-quarter results on Jul 29, 2016.
Last quarter, the company delivered in-line results with the Zacks Consensus Estimate. The company has an average positive earnings surprise of 15.18% in the trailing 4 quarters.
The company will benefit from cost-saving measures implemented in the quarter. The company’s Earnings ESP of +0.00% and a Zacks Rank #3 (Buy) make surprise prediction difficult.
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Metal Stocks Reporting Earnings on Jul 29: SWC, URG
Last year, metal companies saw millions being wiped out due to the slowdown in China and a subsequent crash in commodity prices. In the wake of falling demand, the only key to stay afloat was to control costs. Saddled with debt, a few companies had to divest underperforming assets.
This year, the industry seems to have staged a comeback. Alcoa, Inc. (AA - Free Report) kick-started the second-quarter earnings season in style, beating expectations despite depressed aluminium prices. Alcoa remained optimistic about its forecast of demand outpacing supply in 2016. This should bode well for future aluminum prices. The company’s positive outlook for the automotive and construction sectors augurs well for the steel industry.
As it is, gold and silver are major movers this year, thanks to the slowdown in China, volatile equity markets due to Brexit and a dovish Fed and introduction of negative interest rates by several central banks (including Japan). Iron-ore prices have also been on an upward trajectory, triggered by the “big three” producers -- BHP Billiton Ltd. (BHP - Free Report) , Rio Tinto plc (RIO - Free Report) , and Vale S.A. (VALE - Free Report) -- trimming their full-year iron production guidance. In addition, fresh stimulus measures introduced by the Chinese government to boost steel production led to the upswing, implying a revival in the country’s property construction sector.
Copper prices have also gained on the back of a huge jump in imports in China – the top consumer. Lately, Brexit fears also supported prices. Recently, expectations of a fresh economic stimulus in Europe and China buoyed demand for the metal.
As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. The 35% of the companies in this sector that have reported so far put up a 3.8% fall in earnings on the scoreboard. Considering the companies that are yet to report, the sector’s earnings are expected to drop 12.2% in the quarter.
However, it is not the only sector to suffer such a fate this quarter. Earnings growth is anticipated to be in the negative territory for 9 of the 16 Zacks sectors, with Energy being the biggest laggard. Looking at the projected estimates for the quarter, total S&P 500 earnings are expected to be down 3.5% on the back of a 0.4% dip in revenues. It seems the quarter is on track to be the 5th in a row to record an earnings decline (read more: Q2 Earnings: Modest Improvement Continues?).
Let’s see what’s in store for these miners that are set to report quarterly numbers on Jul 29.
Stillwater Mining Company , miner of platinum, palladium and associated metals, is geared up to report its second-quarter results before the market opens on Jul 29, 2016.
STILLWATER MNG Price and EPS Surprise
STILLWATER MNG Price and EPS Surprise | STILLWATER MNG Quote
Last quarter, the company delivered a negative earnings surprise of 14.29%. The company has missed the Zacks Consensus Estimate in 3 of the last 4 quarters, with an average negative earnings surprise of 15.18%.
Stillwater Mining should benefit from operational cost reductions. The company’s Earnings ESP of +0.00% and a Zacks Rank #3 (Buy) make surprise prediction difficult.
UR-Energy Inc. (URG - Free Report) is engaged in the acquisition, exploration, development, and operation of uranium mineral properties, and will report second-quarter results on Jul 29, 2016.
UR-ENERGY INC Price and EPS Surprise
UR-ENERGY INC Price and EPS Surprise | UR-ENERGY INC Quote
Last quarter, the company delivered in-line results with the Zacks Consensus Estimate. The company has an average positive earnings surprise of 15.18% in the trailing 4 quarters.
The company will benefit from cost-saving measures implemented in the quarter. The company’s Earnings ESP of +0.00% and a Zacks Rank #3 (Buy) make surprise prediction difficult.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>