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Gold Mining Stocks to Watch for Earnings on Aug 8: FNV, RIC
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This year gold has been on a roll primarily fuelled by the slowdown in China. Further, volatile equity markets and introduction of negative interest rates by several central banks (including Japan) have spurred safe-haven demand for gold. Gold prices also benefited from robust investment inflows. This safe-haven asset has gained both pre- and post-Brexit chaos. The U.S. Federal Reserve’s dovish stance has been another major factor that has supported gold. A delay in raising interest rates elevates demand for gold, which produces no income, but relies on price appreciation to attract investors.
In fact, gold has been the best performing asset, trumping major equity indices, investment grade and high-yield bonds and commodity indices. The yellow metal has gained 27% year to date, with current prices hovering above the $1,300 mark.
The gold mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. With 95% of the companies in this sector having reported their numbers, we are in the final lap of the sector’s earnings season. The sector has put up an 11.8% decline in earnings on the scoreboard. Considering the companies that are yet to report, the sector’s earnings are expected to drop 11.7% in the quarter.
However, it is not the only sector to suffer an earnings decline this quarter. Earnings growth is anticipated to be in the negative territory for 7 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 3.1% on the back of a 0.4% dip in revenues. The quarter is on track to be the fifth in a row to suffer an earnings decline (read more: 4 Things to Know about the Q2 Earnings Season?).
Let’s see what’s in store for the gold miners that are set to report quarterly numbers on Aug 8.
Franco-Nevada Corporation (FNV - Free Report) – a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, and Africa – is expected to release second-quarter results on Aug 8, after the market closes.
Franco-Nevada delivered a positive earnings surprise of 30.77% last quarter. The company has an average negative earnings surprise of 7.56% over the trailing four quarters.
Franco-Nevada's recent investments at Antamina and Antapaccay helped generate record quarterly Gold Equivalent Ounces and revenues in the first quarter. These investments have further strengthened and diversified its portfolio with long-duration quality assets.
Franco-Nevada has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of 0.00% which makes surprise prediction difficult.
Richmont Mines Inc. engages in the mining, exploration, and development of mining properties in Canada. It operates three gold mines – including the Island Gold mine in Ontario, and the Beaufor mine and Camflo Mill in Quebec. It is slated to report second-quarter numbers on Aug 8, before the market opens.
The company delivered a negative earnings surprise of 8.33% last quarter. Richmont Mines recently reported that the Island Gold Mine delivered another healthy quarter of operational results that contributed to second-quarter consolidated production of 23,320 gold ounces at cash costs of $903 per ounce.
Richmond Mines has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of 0.00% which makes surprise prediction difficult.
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Gold Mining Stocks to Watch for Earnings on Aug 8: FNV, RIC
This year gold has been on a roll primarily fuelled by the slowdown in China. Further, volatile equity markets and introduction of negative interest rates by several central banks (including Japan) have spurred safe-haven demand for gold. Gold prices also benefited from robust investment inflows. This safe-haven asset has gained both pre- and post-Brexit chaos. The U.S. Federal Reserve’s dovish stance has been another major factor that has supported gold. A delay in raising interest rates elevates demand for gold, which produces no income, but relies on price appreciation to attract investors.
In fact, gold has been the best performing asset, trumping major equity indices, investment grade and high-yield bonds and commodity indices. The yellow metal has gained 27% year to date, with current prices hovering above the $1,300 mark.
The gold mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. With 95% of the companies in this sector having reported their numbers, we are in the final lap of the sector’s earnings season. The sector has put up an 11.8% decline in earnings on the scoreboard. Considering the companies that are yet to report, the sector’s earnings are expected to drop 11.7% in the quarter.
However, it is not the only sector to suffer an earnings decline this quarter. Earnings growth is anticipated to be in the negative territory for 7 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 3.1% on the back of a 0.4% dip in revenues. The quarter is on track to be the fifth in a row to suffer an earnings decline (read more: 4 Things to Know about the Q2 Earnings Season?).
Let’s see what’s in store for the gold miners that are set to report quarterly numbers on Aug 8.
Franco-Nevada Corporation (FNV - Free Report) – a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, and Africa – is expected to release second-quarter results on Aug 8, after the market closes.
FRANCO NV CP Price and EPS Surprise
FRANCO NV CP Price and EPS Surprise | FRANCO NV CP Quote
Franco-Nevada delivered a positive earnings surprise of 30.77% last quarter. The company has an average negative earnings surprise of 7.56% over the trailing four quarters.
Franco-Nevada's recent investments at Antamina and Antapaccay helped generate record quarterly Gold Equivalent Ounces and revenues in the first quarter. These investments have further strengthened and diversified its portfolio with long-duration quality assets.
Franco-Nevada has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of 0.00% which makes surprise prediction difficult.
Richmont Mines Inc. engages in the mining, exploration, and development of mining properties in Canada. It operates three gold mines – including the Island Gold mine in Ontario, and the Beaufor mine and Camflo Mill in Quebec. It is slated to report second-quarter numbers on Aug 8, before the market opens.
RICHMONT MINES Price and EPS Surprise
RICHMONT MINES Price and EPS Surprise | RICHMONT MINES Quote
The company delivered a negative earnings surprise of 8.33% last quarter. Richmont Mines recently reported that the Island Gold Mine delivered another healthy quarter of operational results that contributed to second-quarter consolidated production of 23,320 gold ounces at cash costs of $903 per ounce.
Richmond Mines has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of 0.00% which makes 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 >>