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Agnico Eagle (AEM) Up 13% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Agnico Eagle Mines Limited (AEM - Free Report) . Shares have added about 13% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Agnico Eagle’s Earnings & Revenues Beat Estimates in Q1
Agnico Eagle reported a net income of $76 million or $0.33 per share in the first quarter of 2017, compared with net income of $27.8 million or $0.13 recorded in the year-ago quarter.
Adjusted (barring one-time items) earnings came in at $0.28 per share in the quarter, topping the Zacks Consensus Estimate of $0.14.
Revenues and Operational Highlights
Agnico Eagle recorded revenues of $547.5 million in the first quarter of 2017, up 11.6% from $490.5 million in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $519 million.
Payable gold production in the first quarter improved 1.7% year over year to 418,426 ounces from 411,336 ounces in the year-ago quarter.
Total cash costs per ounce for the first quarter of 2017 was $539, down 6% from the prior-year quarter figure of $573.
AISC were $741 for first quarter 2017, lower than $797 in the first quarter of 2016. This is mainly due to lower total cash costs per ounce and reduced sustaining capital expenditures on a year over year basis.
Financial Position
As of Mar 31, 2017, cash and cash equivalents were around $793.2 million, up 387.4% from year-ago quarter. Long-term debt was $1,073.4 million in the reported quarter up 0.05% from $1,072.7 million in the prior year quarter.
There was no outstanding balance on Agnico Eagle’s credit facility as of Mar 31, 2017. This results in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditures in the reported quarter was $136.7 million.
Outlook
Agnico Eagle continues to expect total cash costs of between $595 and $625 per ounce and AISC of between $850 and $900 per ounce in 2017. The company anticipates production to exceed 1.57 million ounces in 2017 compared to the previous guidance of 1.55 million ounces.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter In the past month, the consensus estimate has shifted by 65.6% due to these changes.
At this time, the stock has a great Growth Score of 'A', however its Momentum is lagging a bit with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is more suitable for growth investors than those seeking momentum.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Agnico Eagle (AEM) Up 13% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Agnico Eagle Mines Limited (AEM - Free Report) . Shares have added about 13% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Agnico Eagle’s Earnings & Revenues Beat Estimates in Q1
Agnico Eagle reported a net income of $76 million or $0.33 per share in the first quarter of 2017, compared with net income of $27.8 million or $0.13 recorded in the year-ago quarter.
Adjusted (barring one-time items) earnings came in at $0.28 per share in the quarter, topping the Zacks Consensus Estimate of $0.14.
Revenues and Operational Highlights
Agnico Eagle recorded revenues of $547.5 million in the first quarter of 2017, up 11.6% from $490.5 million in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $519 million.
Payable gold production in the first quarter improved 1.7% year over year to 418,426 ounces from 411,336 ounces in the year-ago quarter.
Total cash costs per ounce for the first quarter of 2017 was $539, down 6% from the prior-year quarter figure of $573.
AISC were $741 for first quarter 2017, lower than $797 in the first quarter of 2016. This is mainly due to lower total cash costs per ounce and reduced sustaining capital expenditures on a year over year basis.
Financial Position
As of Mar 31, 2017, cash and cash equivalents were around $793.2 million, up 387.4% from year-ago quarter. Long-term debt was $1,073.4 million in the reported quarter up 0.05% from $1,072.7 million in the prior year quarter.
There was no outstanding balance on Agnico Eagle’s credit facility as of Mar 31, 2017. This results in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditures in the reported quarter was $136.7 million.
Outlook
Agnico Eagle continues to expect total cash costs of between $595 and $625 per ounce and AISC of between $850 and $900 per ounce in 2017. The company anticipates production to exceed 1.57 million ounces in 2017 compared to the previous guidance of 1.55 million ounces.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter In the past month, the consensus estimate has shifted by 65.6% due to these changes.
Agnico Eagle Mines Limited Price and Consensus
Agnico Eagle Mines Limited Price and Consensus | Agnico Eagle Mines Limited Quote
VGM Scores
At this time, the stock has a great Growth Score of 'A', however its Momentum is lagging a bit with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is more suitable for growth investors than those seeking momentum.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.