We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Yamana Gold (AUY) in Q2 Earnings?
Read MoreHide Full Article
Yamana Gold, Inc. is set to release second-quarter 2018 results on Jul 26, after the closing bell.
In the last reported quarter, the company incurred net loss of $160.1 million or 17 cents per share compared with breakeven results in the prior-year quarter. Adjusted earnings came in at a penny per share, which was in line with the Zacks Consensus Estimate.
Revenues went up roughly 11.4% year over year to $449.7 million in the quarter.
Notably, Yamana Gold beat the Zacks Consensus Estimate in two of the trailing four quarters, with an average positive surprise of 25%.
Let’s see how things are shaping up for this announcement.
The company, during first-quarter earnings call, stated that gold production in the last reported quarter exceeded its target. Regarding the cost side, the company delivered production at lower all-in sustaining costs (AISC) on a year-over-year basis for all metal.
The company also reiterated production and cost guidance for 2018. It continues to expect roughly 46% of total copper production and 47% of total gold production from Yamana Mines during the first half of 2018.
In May 2018, the company declared the first gold and silver production at its Cerro Moro mine. The mine is a high-grade gold and silver operation sourcing ore from a combination of open pit and underground mining. Production ramp up at the mine is on track and the company expects commercial production in second-quarter 2018. Per the company, most of the production of Cerro Moro is expected in the second half of 2018.
Yamana Gold’s total gold production for the second quarter is projected to decline roughly 16.2% sequentially as the Zacks Consensus Estimate is currently pegged at 227,000 ounces. The figure also depicts year-over-year decline of roughly 21.5%.
The company’s production was affected in the first quarter due to heavier-than-expected raining. It also expects gold and copper production to be lower in the first half of 2018 compared with the second half.
Yamana Gold’s shares have lost 5.1% in the last three months compared with the 2.4% decline recorded by the industry.
Earnings Whispers
Our proven model does not conclusively show that Yamana Gold is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Earnings ESP: Earnings ESP for Yamana Gold for the second quarter is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 2 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Yamana Gold currently carries a Zacks Rank #4 (Sell), which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Ingevity Corp. (NGVT - Free Report) has an Earnings ESP of +1.52% and carries a Zacks Rank #3.
Hi-Crush Partners LP has an Earnings ESP of +5.60% and carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
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.
Image: Bigstock
What's in the Cards for Yamana Gold (AUY) in Q2 Earnings?
Yamana Gold, Inc. is set to release second-quarter 2018 results on Jul 26, after the closing bell.
In the last reported quarter, the company incurred net loss of $160.1 million or 17 cents per share compared with breakeven results in the prior-year quarter. Adjusted earnings came in at a penny per share, which was in line with the Zacks Consensus Estimate.
Revenues went up roughly 11.4% year over year to $449.7 million in the quarter.
Notably, Yamana Gold beat the Zacks Consensus Estimate in two of the trailing four quarters, with an average positive surprise of 25%.
Let’s see how things are shaping up for this announcement.
Yamana Gold Inc. Price and EPS Surprise
Yamana Gold Inc. Price and EPS Surprise | Yamana Gold Inc. Quote
Factors at Play
The company, during first-quarter earnings call, stated that gold production in the last reported quarter exceeded its target. Regarding the cost side, the company delivered production at lower all-in sustaining costs (AISC) on a year-over-year basis for all metal.
The company also reiterated production and cost guidance for 2018. It continues to expect roughly 46% of total copper production and 47% of total gold production from Yamana Mines during the first half of 2018.
In May 2018, the company declared the first gold and silver production at its Cerro Moro mine. The mine is a high-grade gold and silver operation sourcing ore from a combination of open pit and underground mining. Production ramp up at the mine is on track and the company expects commercial production in second-quarter 2018. Per the company, most of the production of Cerro Moro is expected in the second half of 2018.
Yamana Gold’s total gold production for the second quarter is projected to decline roughly 16.2% sequentially as the Zacks Consensus Estimate is currently pegged at 227,000 ounces. The figure also depicts year-over-year decline of roughly 21.5%.
The company’s production was affected in the first quarter due to heavier-than-expected raining. It also expects gold and copper production to be lower in the first half of 2018 compared with the second half.
Yamana Gold’s shares have lost 5.1% in the last three months compared with the 2.4% decline recorded by the industry.
Earnings Whispers
Our proven model does not conclusively show that Yamana Gold is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Earnings ESP: Earnings ESP for Yamana Gold for the second quarter is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 2 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Yamana Gold currently carries a Zacks Rank #4 (Sell), which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Eastman Chemical Co. (EMN - Free Report) has an Earnings ESP of +1.25% and holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity Corp. (NGVT - Free Report) has an Earnings ESP of +1.52% and carries a Zacks Rank #3.
Hi-Crush Partners LP has an Earnings ESP of +5.60% and carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
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.
See Zacks' 3 Best Stocks to Play This Trend >>