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Agnico (AEM) Up 19.6% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Agnico Eagle Mines (AEM - Free Report) . Shares have added about 19.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Agnico 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 drivers.
Agnico Eagle reported net income of $101.1 million or 41 cents per share in fourth-quarter 2021, down from $205.2 million or 84 cents per share reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 46 cents. The bottom line missed the Zacks Consensus Estimate of 55 cents per share.
The company generated revenues of $949.1 million, up 2.2% year over year. The top line surpassed the Zacks Consensus Estimate of $932.9 million.
The company saw lower average realized metal prices and higher production costs in the quarter, partly offset by higher sales volumes.
Operational Highlights
Payable gold production (including the Hope Bay mine) was 501,932 ounces in the reported quarter, up modestly from 501,445 ounces in the prior-year quarter.
Total cash costs per ounce for gold, excluding Hope Bay, were $812, up from $701 a year ago. All-in sustaining costs (AISC) were $1,126 per ounce in the quarter, excluding Hope Bay, compared to $985 per ounce in the prior-year quarter.
FY21 Results
Earnings (as reported) for full-year 2021 were $2.22 per share compared with $2.10 per share a year ago. Net sales rose 21.9% year over year to $3,823.9 million.
Financial Position
Agnico Eagle ended the year with cash and cash equivalents of $185.8 million, down 53.8% year over year. Long-term debt was around $1,340.2 million, down 14.4% year over year.
Total cash from operating activities amounted to $261.7 million in the fourth quarter, down 35.1% year over year.
Outlook
The company expects payable gold production for 2022 to be in the range of 3.2-3.4 million ounces. It also projects total cash costs per ounce of $725-$775 and AISC of $1,000-$1,050 per ounce for 2022.
The forecast for capital expenditures for 2022 is roughly $1.4 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -22.02% due to these changes.
VGM Scores
At this time, Agnico has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Agnico has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Agnico (AEM) Up 19.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Agnico Eagle Mines (AEM - Free Report) . Shares have added about 19.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Agnico 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 drivers.
Agnico Eagle’s Q4 Earnings Lag, Sales Beat Estimates
Agnico Eagle reported net income of $101.1 million or 41 cents per share in fourth-quarter 2021, down from $205.2 million or 84 cents per share reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 46 cents. The bottom line missed the Zacks Consensus Estimate of 55 cents per share.
The company generated revenues of $949.1 million, up 2.2% year over year. The top line surpassed the Zacks Consensus Estimate of $932.9 million.
The company saw lower average realized metal prices and higher production costs in the quarter, partly offset by higher sales volumes.
Operational Highlights
Payable gold production (including the Hope Bay mine) was 501,932 ounces in the reported quarter, up modestly from 501,445 ounces in the prior-year quarter.
Total cash costs per ounce for gold, excluding Hope Bay, were $812, up from $701 a year ago. All-in sustaining costs (AISC) were $1,126 per ounce in the quarter, excluding Hope Bay, compared to $985 per ounce in the prior-year quarter.
FY21 Results
Earnings (as reported) for full-year 2021 were $2.22 per share compared with $2.10 per share a year ago. Net sales rose 21.9% year over year to $3,823.9 million.
Financial Position
Agnico Eagle ended the year with cash and cash equivalents of $185.8 million, down 53.8% year over year. Long-term debt was around $1,340.2 million, down 14.4% year over year.
Total cash from operating activities amounted to $261.7 million in the fourth quarter, down 35.1% year over year.
Outlook
The company expects payable gold production for 2022 to be in the range of 3.2-3.4 million ounces. It also projects total cash costs per ounce of $725-$775 and AISC of $1,000-$1,050 per ounce for 2022.
The forecast for capital expenditures for 2022 is roughly $1.4 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -22.02% due to these changes.
VGM Scores
At this time, Agnico has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Agnico has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.