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The gold mining giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 13.1%. It posted an earnings surprise of 18.2% in the last reported quarter. The company’s fourth-quarter results are expected to reflect the benefits of improved gold prices and strong gold production.
The stock is down 13.3% in the past year compared with the industry’s 1.5% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the upcoming announcement.
What Do the Estimates Say?
Barrick, last month, announced preliminary results for the fourth quarter. It reported fourth-quarter production of 1.12 million ounces of gold and 96 million pounds of copper. Preliminary sales for the fourth quarter were 1.11 million ounces of gold and 99 million pounds of copper.
The company’s average market price for gold in the fourth quarter was $1,726 per ounce, which was 0.2% higher than the reported figure in the third quarter. The average market price for copper in the fourth quarter was $3.63 per pound, which was 12% higher than the third quarter.
Cost of sales for gold for the fourth quarter is projected to be 4-6% higher than the third quarter and the total cash cost forecast to be 2-4% lower than the prior quarter. The company expects its all-in sustaining costs per ounce to be 1-3% lower than the third quarter.
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Barrick is currently pegged at $3,146 million, which calls for a decline of around 5% year over year.
Some Factors to Watch For
Strong gold production is likely have supported the company’s performance in the quarter to be reported. Its preliminary gold production in the fourth quarter was 13% higher than the third quarter. Barrick saw strong performance at the Cortez, Carlin and Tongon in the fourth quarter, partly offset by weak production at Pueblo Viejo in the quarter.
Gold prices also regained ground in the fourth quarter after remaining under pressure in the second and third quarter. Gold rallied roughly 8% in the first quarter of 2022, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict.
However, gold prices erased the gains and closed the second quarter roughly 7% lower. The downdrift continued in the third quarter with prices falling around 8% in the quarter. Higher bond yields, interest rate hikes, geopolitical instability and a sharp rally in the U.S. dollar weighed on gold prices.
However, prices recovered in the fourth quarter and crossed the $1,700 an ounce mark in November as the Fed meeting that month signaled a likelihood of a slowdown of rate hikes. Gold prices also broke above the $1,800 per ounce level in December as signs of cooling U.S. inflation raised expectations of a less aggressive policy stance by the Federal Reserve. Prices of the yellow metal were up around 10% in the fourth quarter.
The benefits of the price recovery are expected to reflect on Barrick’s performance in the December quarter.
Our proven model does not conclusively predict an earnings beat for Barrick this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Barrick is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 12 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Barrick currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Celanese Corporation (CE - Free Report) , slated to release earnings on Feb 23, has an Earnings ESP of +0.37%.
Image: Bigstock
Barrick (GOLD) to Report Q4 Earnings: What's in the Cards?
Barrick Gold Corporation (GOLD - Free Report) is scheduled to report fourth-quarter 2022 results before the opening bell on Feb 15.
The gold mining giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 13.1%. It posted an earnings surprise of 18.2% in the last reported quarter. The company’s fourth-quarter results are expected to reflect the benefits of improved gold prices and strong gold production.
The stock is down 13.3% in the past year compared with the industry’s 1.5% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the upcoming announcement.
What Do the Estimates Say?
Barrick, last month, announced preliminary results for the fourth quarter. It reported fourth-quarter production of 1.12 million ounces of gold and 96 million pounds of copper. Preliminary sales for the fourth quarter were 1.11 million ounces of gold and 99 million pounds of copper.
The company’s average market price for gold in the fourth quarter was $1,726 per ounce, which was 0.2% higher than the reported figure in the third quarter. The average market price for copper in the fourth quarter was $3.63 per pound, which was 12% higher than the third quarter.
Cost of sales for gold for the fourth quarter is projected to be 4-6% higher than the third quarter and the total cash cost forecast to be 2-4% lower than the prior quarter. The company expects its all-in sustaining costs per ounce to be 1-3% lower than the third quarter.
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Barrick is currently pegged at $3,146 million, which calls for a decline of around 5% year over year.
Some Factors to Watch For
Strong gold production is likely have supported the company’s performance in the quarter to be reported. Its preliminary gold production in the fourth quarter was 13% higher than the third quarter. Barrick saw strong performance at the Cortez, Carlin and Tongon in the fourth quarter, partly offset by weak production at Pueblo Viejo in the quarter.
Gold prices also regained ground in the fourth quarter after remaining under pressure in the second and third quarter. Gold rallied roughly 8% in the first quarter of 2022, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict.
However, gold prices erased the gains and closed the second quarter roughly 7% lower. The downdrift continued in the third quarter with prices falling around 8% in the quarter. Higher bond yields, interest rate hikes, geopolitical instability and a sharp rally in the U.S. dollar weighed on gold prices.
However, prices recovered in the fourth quarter and crossed the $1,700 an ounce mark in November as the Fed meeting that month signaled a likelihood of a slowdown of rate hikes. Gold prices also broke above the $1,800 per ounce level in December as signs of cooling U.S. inflation raised expectations of a less aggressive policy stance by the Federal Reserve. Prices of the yellow metal were up around 10% in the fourth quarter.
The benefits of the price recovery are expected to reflect on Barrick’s performance in the December quarter.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation price-eps-surprise | Barrick Gold Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Barrick this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Barrick is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 12 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Barrick currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Celanese Corporation (CE - Free Report) , slated to release earnings on Feb 23, has an Earnings ESP of +0.37%.
The Zacks Consensus Estimate for Celanese’s fourth-quarter earnings is currently pegged at $1.56. CE currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quaker Chemical Corporation (KWR - Free Report) , slated to release earnings on Feb 23, has an Earnings ESP of +7.38%.
The Zacks Consensus Estimate for Quaker Chemical’s fourth-quarter earnings is currently pegged at $1.22. KWR currently carries a Zacks Rank #2.
Teck Resources Limited (TECK - Free Report) , scheduled to release earnings on Feb 21, has an Earnings ESP of +9.05%.
The Zacks Consensus Estimate for Teck Resources’ fourth-quarter earnings is currently pegged at 96 cents. TECK currently carries a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.