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Gold Mining Stocks Q3 Earnings on Oct 26: ABX, NEM, GG, AEM
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The speculation regarding a Fed rate hike this year has been stirred up as there has been an increase in economic data recently. Further, a stronger U.S. dollar has put pressure on gold prices of late, dragging the prices below the psychological level of $1,300 an ounce. Nevertheless, the yellow metal has gained 18% year to date.
So far, worries over the global economy, Brexit-induced volatile equity markets, the Fed’s stance to maintain steady interest rates and the introduction of negative interest rates by several central banks escalated the safe haven appeal of gold. Moreover, gold prices are seasonally stronger in the back half of the year aided by retail demand, due to festival and wedding related buying activities in countries like India and China.
The gold mining industry is grouped under the Basic Materials sector which is among seven of the 16 Zacks sectors that are expected to see negative earnings growth in the third quarter, per the latest Earnings Trends report.
Based on the earnings scorecard as of Oct 21, earnings for the sector participants in the S&P 500 index are up 3.3% from the same period last year on the back of 1.8% rise in revenues. Of the 20% companies that reported in the Basic Material sector, earnings growth of 29.4% has been put up on the scoreboard. However, it is too early to rejoice as the overall growth portrayal for the Basic Materials sector looks drab with the sector expected to see an earnings decline of 1.3% due to 3.1% lower sales.
Let’s see what’s in store for the gold miners that are set to report quarterly numbers on Oct 26.
The largest gold mining company in the world, Barrick Gold Corporation is expected to report third-quarter 2016 earnings, after the market closes. Barrick Gold’s second-quarter earnings soared 180% year over year and came in line with the Zacks Consensus Estimate. Additionally, revenues declined year over year and fell short of the Zacks Consensus Estimate. Barrick Gold has an average positive earnings surprise of 26.91% in the last four quarters.
The Zacks Consensus Estimate for the third quarter is at 19 cents, depicting a 71.72% year-over-year growth. The company should gain from its cost management initiatives as well as efforts to cut debt. However, lower expected gold production (on a year-over-year basis) could weigh on its sales in 2016.
Barrick Gold has a Zacks Rank #3 (Hold) and an Earnings ESP of -5.26% which makes a beat unlikely this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Newmont Mining Corporation (NEM - Free Report) primarily acquires, develops, explores for and produces gold, silver, and copper. The company will report its third-quarter 2016 results after the market closes. Newmont’s earnings and revenues had surged year over year in the second quarter, surpassing their respective Zacks Consensus Estimates.
Last quarter, the company had delivered a positive earnings surprise of 57.14%. Newmont has beaten the Zacks Consensus Estimate in three of the trailing four quarters, with a positive average earnings surprise of 17.17%.
The Zacks Consensus Estimate for the third quarter is at 52 cents, reflecting a 125.12% year-over-year growth. Newmont continues to invest in growth projects that are anticipated to boost its production performance. Additionally, the company is making significant progress with its cost and efficiency improvement programs. (Read more: Newmont Q3 Earnings: Will the Stock Beat Estimates?)
Goldcorp, Inc. is engaged in the acquisition, exploration, development and operation of precious metal properties in Canada, the United States, Mexico along with Central and South America. It is expected to report third-quarter 2016 results after the market closes.
The company delivered a negative earnings surprise of 125% in the last quarter. Goldcorp has missed the Zacks Consensus Estimate in three of the last four training quarters, with a negative earnings surprise of 195.00%.
The Zacks Consensus Estimate for the third quarter is at 12 cents, depicting a 392.31% year-over-year growth. Goldcorp faces risks associated with volatile gold prices and geopolitical challenges. The recent decline in gold prices poses a concern for the company.
Goldcorp’s Zacks Rank #4 (Sell) and an Earnings ESP of -25.00% make an earnings beat unlikely this quarter. Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Agnico Eagle Mines, Ltd. (AEM - Free Report) is engaged in the exploration, development and production of mineral properties in Canada, Finland, and Mexico – is expected to report its third-quarter 2016 results after the market closes.
The company posted a positive earnings surprise of 8.33% in the last quarter. It has an impressive average positive earnings surprise of 102.78% in the last four quarters.
The Zacks Consensus Estimate for the third quarter is at 20 cents, depicting a 22.66% year-over-year growth. The recent fall in gold prices poses a concern for the company. Moreover, Agnico-Eagle faces currency exchange translation risk and its mines are affected by geopolitical issues. Additionally, any potential delay associated with the company's key development projects may jeopardize its future production.
Agnico Eagle Mines’ Earnings ESP of 0.00% and Zacks Rank #5 (Strong Sell) makes a beat unlikely this quarter.
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Gold Mining Stocks Q3 Earnings on Oct 26: ABX, NEM, GG, AEM
The speculation regarding a Fed rate hike this year has been stirred up as there has been an increase in economic data recently. Further, a stronger U.S. dollar has put pressure on gold prices of late, dragging the prices below the psychological level of $1,300 an ounce. Nevertheless, the yellow metal has gained 18% year to date.
So far, worries over the global economy, Brexit-induced volatile equity markets, the Fed’s stance to maintain steady interest rates and the introduction of negative interest rates by several central banks escalated the safe haven appeal of gold. Moreover, gold prices are seasonally stronger in the back half of the year aided by retail demand, due to festival and wedding related buying activities in countries like India and China.
The gold mining industry is grouped under the Basic Materials sector which is among seven of the 16 Zacks sectors that are expected to see negative earnings growth in the third quarter, per the latest Earnings Trends report.
Based on the earnings scorecard as of Oct 21, earnings for the sector participants in the S&P 500 index are up 3.3% from the same period last year on the back of 1.8% rise in revenues. Of the 20% companies that reported in the Basic Material sector, earnings growth of 29.4% has been put up on the scoreboard. However, it is too early to rejoice as the overall growth portrayal for the Basic Materials sector looks drab with the sector expected to see an earnings decline of 1.3% due to 3.1% lower sales.
Let’s see what’s in store for the gold miners that are set to report quarterly numbers on Oct 26.
The largest gold mining company in the world, Barrick Gold Corporation is expected to report third-quarter 2016 earnings, after the market closes. Barrick Gold’s second-quarter earnings soared 180% year over year and came in line with the Zacks Consensus Estimate. Additionally, revenues declined year over year and fell short of the Zacks Consensus Estimate. Barrick Gold has an average positive earnings surprise of 26.91% in the last four quarters.
BARRICK GOLD CP Price and EPS Surprise
BARRICK GOLD CP Price and EPS Surprise | BARRICK GOLD CP Quote
The Zacks Consensus Estimate for the third quarter is at 19 cents, depicting a 71.72% year-over-year growth. The company should gain from its cost management initiatives as well as efforts to cut debt. However, lower expected gold production (on a year-over-year basis) could weigh on its sales in 2016.
Barrick Gold has a Zacks Rank #3 (Hold) and an Earnings ESP of -5.26% which makes a beat unlikely this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Newmont Mining Corporation (NEM - Free Report) primarily acquires, develops, explores for and produces gold, silver, and copper. The company will report its third-quarter 2016 results after the market closes. Newmont’s earnings and revenues had surged year over year in the second quarter, surpassing their respective Zacks Consensus Estimates.
Last quarter, the company had delivered a positive earnings surprise of 57.14%. Newmont has beaten the Zacks Consensus Estimate in three of the trailing four quarters, with a positive average earnings surprise of 17.17%.
NEWMONT MINING Price and EPS Surprise
NEWMONT MINING Price and EPS Surprise | NEWMONT MINING Quote
The Zacks Consensus Estimate for the third quarter is at 52 cents, reflecting a 125.12% year-over-year growth. Newmont continues to invest in growth projects that are anticipated to boost its production performance. Additionally, the company is making significant progress with its cost and efficiency improvement programs. (Read more: Newmont Q3 Earnings: Will the Stock Beat Estimates?)
Newmont is unlikely to beat estimates this quarter, for it has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Goldcorp, Inc. is engaged in the acquisition, exploration, development and operation of precious metal properties in Canada, the United States, Mexico along with Central and South America. It is expected to report third-quarter 2016 results after the market closes.
The company delivered a negative earnings surprise of 125% in the last quarter. Goldcorp has missed the Zacks Consensus Estimate in three of the last four training quarters, with a negative earnings surprise of 195.00%.
GOLDCORP INC Price and EPS Surprise
GOLDCORP INC Price and EPS Surprise | GOLDCORP INC Quote
The Zacks Consensus Estimate for the third quarter is at 12 cents, depicting a 392.31% year-over-year growth. Goldcorp faces risks associated with volatile gold prices and geopolitical challenges. The recent decline in gold prices poses a concern for the company.
Goldcorp’s Zacks Rank #4 (Sell) and an Earnings ESP of -25.00% make an earnings beat unlikely this quarter. Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Agnico Eagle Mines, Ltd. (AEM - Free Report) is engaged in the exploration, development and production of mineral properties in Canada, Finland, and Mexico – is expected to report its third-quarter 2016 results after the market closes.
The company posted a positive earnings surprise of 8.33% in the last quarter. It has an impressive average positive earnings surprise of 102.78% in the last four quarters.
AGNICO EAGLE Price and EPS Surprise
AGNICO EAGLE Price and EPS Surprise | AGNICO EAGLE Quote
The Zacks Consensus Estimate for the third quarter is at 20 cents, depicting a 22.66% year-over-year growth. The recent fall in gold prices poses a concern for the company. Moreover, Agnico-Eagle faces currency exchange translation risk and its mines are affected by geopolitical issues. Additionally, any potential delay associated with the company's key development projects may jeopardize its future production.
Agnico Eagle Mines’ Earnings ESP of 0.00% and Zacks Rank #5 (Strong Sell) makes a beat unlikely this quarter.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>.