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The company earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing it once. It has a trailing four-quarter earnings surprise of roughly 26.4%, on average. It posted an earnings surprise of 20.9% in the last reported quarter. The company’s fourth-quarter results are expected to reflect the benefits of higher gold production and improved gold prices.
The stock has lost 2.4% in the past year compared with the industry’s 5.4% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the upcoming announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Agnico Eagle is currently pegged at $1,423 million, which calls for a rise of around 50% year over year.
The Zacks Consensus Estimate for payable gold production stands at 866,228 ounces for the fourth quarter, implying roughly 6% sequential increase.
The consensus estimate for realized gold price per ounce is pegged at $1,798, indicating a 4.2% sequential increase.
Some Factors to Watch
Higher gold production is likely to have supported the company’s performance in the quarter to be reported. Production is likely to have been driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. The company is also expected to have witnessed continued strong performance in Nunavut and Amaruq operations. Strong operating performance is likely to have aided production at Amaruq. Macassa is also expected to have gained from productivity improvements.
Meanwhile, gold prices regained ground in the fourth quarter after remaining under pressure in the second and third quarters. Prices 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 improved gold prices are expected to reflect on the company’s performance in the December quarter.
Our proven model does not conclusively predict an earnings beat for Agnico Eagle 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 Agnico Eagle is -5.13%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 39 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Agnico Eagle carries a Zacks Rank #2.
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:
Franco-Nevada Corporation (FNV - Free Report) , slated to release earnings on Mar 15, has an Earnings ESP of +0.78%.
Image: Bigstock
Agnico Eagle (AEM) to Report Q4 Earnings: What's in the Offing?
Agnico Eagle Mines Limited (AEM - Free Report) is scheduled to report fourth-quarter 2022 results after the closing bell on Feb 16.
The company earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing it once. It has a trailing four-quarter earnings surprise of roughly 26.4%, on average. It posted an earnings surprise of 20.9% in the last reported quarter. The company’s fourth-quarter results are expected to reflect the benefits of higher gold production and improved gold prices.
The stock has lost 2.4% in the past year compared with the industry’s 5.4% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the upcoming announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Agnico Eagle is currently pegged at $1,423 million, which calls for a rise of around 50% year over year.
The Zacks Consensus Estimate for payable gold production stands at 866,228 ounces for the fourth quarter, implying roughly 6% sequential increase.
The consensus estimate for realized gold price per ounce is pegged at $1,798, indicating a 4.2% sequential increase.
Some Factors to Watch
Higher gold production is likely to have supported the company’s performance in the quarter to be reported. Production is likely to have been driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. The company is also expected to have witnessed continued strong performance in Nunavut and Amaruq operations. Strong operating performance is likely to have aided production at Amaruq. Macassa is also expected to have gained from productivity improvements.
Meanwhile, gold prices regained ground in the fourth quarter after remaining under pressure in the second and third quarters. Prices 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 improved gold prices are expected to reflect on the company’s performance in the December quarter.
Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Agnico Eagle 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 Agnico Eagle is -5.13%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 39 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Agnico Eagle carries a Zacks Rank #2.
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:
Franco-Nevada Corporation (FNV - Free Report) , slated to release earnings on Mar 15, has an Earnings ESP of +0.78%.
The Zacks Consensus Estimate for Franco-Nevada’s fourth-quarter earnings is currently pegged at 86 cents. FNV 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 +6.48%.
The Zacks Consensus Estimate for Teck Resources’ fourth-quarter earnings is currently pegged at 95 cents. TECK currently carries a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.