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A few major mining companies are slated to report their quarterly numbers tomorrow. The Q2 earnings season has started on a buoyant note, with solid momentum on the revenues front.
Based on the latest Earnings Preview, total earnings of the 87 S&P 500 members that have reported results (accounting for 25.7% of the index’s total market capitalization) as of Jul 20 are up 20.9% from the year-ago period while revenues have increased 10.3%. Of the companies that have reported, 86.2% have delivered an earnings beat, while 77% have surpassed revenues estimates. Taking into account all the S&P members that are yet to disclose their numbers, total earnings for the index are expected to be up 21% in Q2 on 8.3% higher revenues.
The mining industry has regained ground with a recovery in commodity prices, renewing investors’ interest in the space. Per the Zacks Industry classification, the mining industry is grouped under the broader Basic Materials sector, which is among the Zacks sectors that are expected to record the strongest gains in Q2. Earnings for the sector are projected to surge 52%, while revenues are expected to move up 24.3%.
Let’s peek into four mining companies that are slated to report Q2 results on Jul 25.
Barrick Gold Corporation will report its results after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 13 cents. It has a Zacks Rank #4 (Sell), which we caution against going into the earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Barrick beat estimates in two of the trailing four quarters, missed once, while reported in line on the other occasion. In this timeframe, it delivered an average positive surprise of 3.5%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,661 million, reflecting an expected decline of 21.5% from the year-ago quarter.
Barrick, earlier this month, released preliminary production results for Q2. Preliminary gold production and sales for Q2 were 1.07 million ounces and 1.04 million ounces, respectively. Average market price for gold during the quarter was $1,306 per ounce. Preliminary copper production and sales totaled 83 million pounds and 74 million pounds, respectively. Average market price for copper was $3.12 per pound.
Notably, Q2 gold production figures were roughly in line with Q1 while all-in sustaining costs (AISC) per ounce is expected to increase around 5-7%. The increase in unit cost stemmed from scheduled maintenance at the Pueblo Viejo autoclaves and the Barrick Nevada roaster. Higher costs may weigh on the company’s results in Q2.
Freeport-McMoRan Inc. (FCX - Free Report) will report before the bell. The company has an Earnings ESP of -0.25%, which coupled with a favorable Zacks Rank #3 (Hold), makes surprise prediction difficult.
The company beat the Zacks Consensus Estimate in two of the trailing four quarters while missed in the other two, with an average negative surprise of 3.6%.
The Zacks Consensus Estimate for revenues is $4,821 million, reflecting a year-over-year increase of around 29.9%. Consolidated copper production for Q2 is expected to rise 1.5% from the last reported quarter as the Zacks Consensus Estimate is pegged at 966 million pounds.
Total copper sales from Freeport’s North American Copper Mines are projected to witness a 3.9% decline sequentially as the Zacks Consensus Estimate for Q2 is pegged at 369 million pounds. Meanwhile, total copper sales from the company’s South American Mining are expected to witness a 2.6% increase from the last reported quarter as the Zacks Consensus Estimate is currently pegged at 307 million pounds.
Copper sales from Indonesia Mining are expected to fall around 9.4% on a sequential basis as the Zacks Consensus Estimate is currently pegged at 289 million pounds. However, gold sales from Indonesia Mining are projected to increase roughly 14.8% from the last reported quarter as the Zacks Consensus Estimate for Q2 is pegged at 692,000 ounces.
Rising unit net cash costs for copper in Freeport’s North American operation is a concern. Nevertheless, Freeport is likely to gain from favorable copper market conditions, focus on productivity along with cost and capital discipline. (Read more: Freeport to Post Q2 Earnings: What's in the Offing?)
Agnico Eagle Mines Limited (AEM - Free Report) will report earnings numbers after the close. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 9 cents. While the company carries a Zacks Rank #3, its 0.00% ESP makes surprise prediction difficult.
Agnico Eagle beat estimates in three of the trailing four quarters while missed on the other occasion. In this timeframe, it delivered an average positive surprise of 29.1%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $570 million, reflecting an expected increase of 3.7% from the year-ago quarter.
For Q2, the company’s gold production is expected to decrease roughly 10% year over year as the Zacks Consensus Estimate is currently pegged at 385,000 ounces.
Agnico Eagle faces headwinds from lower expected production and higher costs. Its unit costs are expected to increase this year mainly due to lower expected production on a year over year basis. This may affect the company’s margins.
Goldcorp Inc. will report quarterly results after the bell. The company has an Earnings ESP of -6.94%. The Zacks Consensus Estimate for the quarter is pegged at 8 cents. The company also has a Zacks Rank #4, which we caution against going into the earnings announcement.
Goldcorp missed estimates in two of the trailing four quarters while beat once and reported in line on the other occasion, delivering an average negative surprise of 4.1%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $881.5 million, reflecting an expected increase of 7.2% from the year-ago quarter.
The company’s gold production for Q2 is expected to decrease roughly 4% year over year as the Zacks Consensus Estimate is currently pegged at 609,000 ounces. As such, lower expected production may impact Q2 results.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Mining Stocks' Earnings Slated on Jul 25: ABX, FCX, AEM, GG
A few major mining companies are slated to report their quarterly numbers tomorrow. The Q2 earnings season has started on a buoyant note, with solid momentum on the revenues front.
Based on the latest Earnings Preview, total earnings of the 87 S&P 500 members that have reported results (accounting for 25.7% of the index’s total market capitalization) as of Jul 20 are up 20.9% from the year-ago period while revenues have increased 10.3%. Of the companies that have reported, 86.2% have delivered an earnings beat, while 77% have surpassed revenues estimates. Taking into account all the S&P members that are yet to disclose their numbers, total earnings for the index are expected to be up 21% in Q2 on 8.3% higher revenues.
The mining industry has regained ground with a recovery in commodity prices, renewing investors’ interest in the space. Per the Zacks Industry classification, the mining industry is grouped under the broader Basic Materials sector, which is among the Zacks sectors that are expected to record the strongest gains in Q2. Earnings for the sector are projected to surge 52%, while revenues are expected to move up 24.3%.
Let’s peek into four mining companies that are slated to report Q2 results on Jul 25.
Barrick Gold Corporation will report its results after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 13 cents. It has a Zacks Rank #4 (Sell), which we caution against going into the earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Barrick beat estimates in two of the trailing four quarters, missed once, while reported in line on the other occasion. In this timeframe, it delivered an average positive surprise of 3.5%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,661 million, reflecting an expected decline of 21.5% from the year-ago quarter.
Barrick, earlier this month, released preliminary production results for Q2. Preliminary gold production and sales for Q2 were 1.07 million ounces and 1.04 million ounces, respectively. Average market price for gold during the quarter was $1,306 per ounce. Preliminary copper production and sales totaled 83 million pounds and 74 million pounds, respectively. Average market price for copper was $3.12 per pound.
Notably, Q2 gold production figures were roughly in line with Q1 while all-in sustaining costs (AISC) per ounce is expected to increase around 5-7%. The increase in unit cost stemmed from scheduled maintenance at the Pueblo Viejo autoclaves and the Barrick Nevada roaster. Higher costs may weigh on the company’s results in Q2.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation Price and EPS Surprise | Barrick Gold Corporation Quote
Freeport-McMoRan Inc. (FCX - Free Report) will report before the bell. The company has an Earnings ESP of -0.25%, which coupled with a favorable Zacks Rank #3 (Hold), makes surprise prediction difficult.
The company beat the Zacks Consensus Estimate in two of the trailing four quarters while missed in the other two, with an average negative surprise of 3.6%.
The Zacks Consensus Estimate for revenues is $4,821 million, reflecting a year-over-year increase of around 29.9%. Consolidated copper production for Q2 is expected to rise 1.5% from the last reported quarter as the Zacks Consensus Estimate is pegged at 966 million pounds.
Total copper sales from Freeport’s North American Copper Mines are projected to witness a 3.9% decline sequentially as the Zacks Consensus Estimate for Q2 is pegged at 369 million pounds. Meanwhile, total copper sales from the company’s South American Mining are expected to witness a 2.6% increase from the last reported quarter as the Zacks Consensus Estimate is currently pegged at 307 million pounds.
Copper sales from Indonesia Mining are expected to fall around 9.4% on a sequential basis as the Zacks Consensus Estimate is currently pegged at 289 million pounds. However, gold sales from Indonesia Mining are projected to increase roughly 14.8% from the last reported quarter as the Zacks Consensus Estimate for Q2 is pegged at 692,000 ounces.
Rising unit net cash costs for copper in Freeport’s North American operation is a concern. Nevertheless, Freeport is likely to gain from favorable copper market conditions, focus on productivity along with cost and capital discipline. (Read more: Freeport to Post Q2 Earnings: What's in the Offing?)
Freeport-McMoRan Inc. Price and EPS Surprise
Freeport-McMoRan Inc. Price and EPS Surprise | Freeport-McMoRan Inc. Quote
Agnico Eagle Mines Limited (AEM - Free Report) will report earnings numbers after the close. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 9 cents. While the company carries a Zacks Rank #3, its 0.00% ESP makes surprise prediction difficult.
Agnico Eagle beat estimates in three of the trailing four quarters while missed on the other occasion. In this timeframe, it delivered an average positive surprise of 29.1%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $570 million, reflecting an expected increase of 3.7% from the year-ago quarter.
For Q2, the company’s gold production is expected to decrease roughly 10% year over year as the Zacks Consensus Estimate is currently pegged at 385,000 ounces.
Agnico Eagle faces headwinds from lower expected production and higher costs. Its unit costs are expected to increase this year mainly due to lower expected production on a year over year basis. This may affect the company’s margins.
Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited Price and EPS Surprise | Agnico Eagle Mines Limited Quote
Goldcorp Inc. will report quarterly results after the bell. The company has an Earnings ESP of -6.94%. The Zacks Consensus Estimate for the quarter is pegged at 8 cents. The company also has a Zacks Rank #4, which we caution against going into the earnings announcement.
Goldcorp missed estimates in two of the trailing four quarters while beat once and reported in line on the other occasion, delivering an average negative surprise of 4.1%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $881.5 million, reflecting an expected increase of 7.2% from the year-ago quarter.
The company’s gold production for Q2 is expected to decrease roughly 4% year over year as the Zacks Consensus Estimate is currently pegged at 609,000 ounces. As such, lower expected production may impact Q2 results.
Goldcorp Inc. Price and EPS Surprise
Goldcorp Inc. Price and EPS Surprise | Goldcorp Inc. Quote
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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