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Barrick Gold (GOLD) Up 4.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Barrick Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Barrick's Earnings and Sales Surpass Estimates in Q3
Barrick recorded net earnings (on a reported basis) of $2,277 million or $1.30 per share in third-quarter 2019 against net loss of $412 million or 35 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were 15 cents, which beat the Zacks Consensus Estimate of 10 cents.
The company recorded revenues of $2,678 million, up roughly 46% year over year. The figure also surpassed the Zacks Consensus Estimate of $2,619.8 million.
Operational Highlights
Total gold production was 1.31 million ounces in the third quarter, up 14% year over year. Average realized price of gold was $1,476 per ounce, up 21% from $1,216 per ounce in the year-ago quarter.
Cost of sales per ounce went up roughly 25% year over year to $1,065 million. All-in sustaining costs (AISC) rose 25.4% year over year to $984 per ounce in the quarter.
Copper production increased 6% year over year to 112 million pounds. Average realized copper price was $2.55 per pound, down around 8% year over year.
Financial Position
At the end of the third quarter, Barrick had cash and cash equivalents of $2,405 million, up around 42% year over year. Long-term debt was $5,494 million at the end of the third quarter.
Net cash provided by operating activities rose 42.2% year over year to $1,004 million in the quarter.
Barrick also increased dividend on the back of robust third-quarter operational performance and growth in cashflows. The company’s board has declared a dividend of 5 cents per share for third-quarter 2019, marking 25% hike from the second quarter’s dividend payout. The dividend is payable on Dec 16, 2019 to shareholders of record at the close of business as of Nov 29, 2019.
Guidance
For 2019, the company continues to anticipate attributable gold production in the range of 5.1-5.6 million ounces at AISC of $870-$920 per ounce. However, cost of sales is now expected to increase in the range $940-$990 per ounce, up from previous expectation of $910-$970 per ounce.
The company continues to expect copper production in the range of 375-430 million pounds at AISC of $2.40-$2.90 per pound and at cost of sales of $2.30-$2.70 per pound.
Capital expenditure is projected between $1,400 million and $1,700 million, unchanged from previous view.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 6.67% due to these changes.
VGM Scores
Currently, Barrick Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. 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.
Outlook
Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Barrick Gold (GOLD) Up 4.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Barrick Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Barrick's Earnings and Sales Surpass Estimates in Q3
Barrick recorded net earnings (on a reported basis) of $2,277 million or $1.30 per share in third-quarter 2019 against net loss of $412 million or 35 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were 15 cents, which beat the Zacks Consensus Estimate of 10 cents.
The company recorded revenues of $2,678 million, up roughly 46% year over year. The figure also surpassed the Zacks Consensus Estimate of $2,619.8 million.
Operational Highlights
Total gold production was 1.31 million ounces in the third quarter, up 14% year over year. Average realized price of gold was $1,476 per ounce, up 21% from $1,216 per ounce in the year-ago quarter.
Cost of sales per ounce went up roughly 25% year over year to $1,065 million. All-in sustaining costs (AISC) rose 25.4% year over year to $984 per ounce in the quarter.
Copper production increased 6% year over year to 112 million pounds. Average realized copper price was $2.55 per pound, down around 8% year over year.
Financial Position
At the end of the third quarter, Barrick had cash and cash equivalents of $2,405 million, up around 42% year over year. Long-term debt was $5,494 million at the end of the third quarter.
Net cash provided by operating activities rose 42.2% year over year to $1,004 million in the quarter.
Barrick also increased dividend on the back of robust third-quarter operational performance and growth in cashflows. The company’s board has declared a dividend of 5 cents per share for third-quarter 2019, marking 25% hike from the second quarter’s dividend payout. The dividend is payable on Dec 16, 2019 to shareholders of record at the close of business as of Nov 29, 2019.
Guidance
For 2019, the company continues to anticipate attributable gold production in the range of 5.1-5.6 million ounces at AISC of $870-$920 per ounce. However, cost of sales is now expected to increase in the range $940-$990 per ounce, up from previous expectation of $910-$970 per ounce.
The company continues to expect copper production in the range of 375-430 million pounds at AISC of $2.40-$2.90 per pound and at cost of sales of $2.30-$2.70 per pound.
Capital expenditure is projected between $1,400 million and $1,700 million, unchanged from previous view.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 6.67% due to these changes.
VGM Scores
Currently, Barrick Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. 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.
Outlook
Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.