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Barrick Gold (GOLD) Up 2.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 2.7% 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 catalysts.
Barrick's Earnings Beat Estimates in Q4, Revenues Lag
Barrick slipped to a net loss (on a reported basis) of $735 million or 42 cents per share in fourth-quarter 2022, from a profit of $726 million or 41 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 13 cents. The figure beat the Zacks Consensus Estimate of 12 cents.
Barrick recorded sales of $2,774 million, down around 16% year over year. The figure missed the Zacks Consensus Estimate of $3,145.6 million.
The results in the reported quarter were hurt by lower year over year gold production, higher costs and lower gold and copper prices.
Operational Highlights
Total gold production was 1,120,000 ounces in the reported quarter, down around 7% year over year and up 13% sequentially. 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.
Fourth-quarter gold sales were 1,111,000 ounces, down around 10% year over year.
Average realized price of gold was $1,728 per ounce in the quarter, down around 4% year over year.
Cost of sales increased around 23% year over year to $1,324 per ounce.
AISC moved up around 28% year over year to $1,242 per ounce in the quarter.
Copper production declined around 24% year over year to 96 million pounds. Average realized copper price was $3.81 per pound, down around 18% year over year.
FY22 Results
Earnings for full-year 2022 were 24 cents per share compared with $1.14 per share a year ago. Net sales fell 8% year over year to $11,013 million.
Financial Position
At the end of 2022, Barrick had cash and cash equivalents of $4,440 million, down around 16% year over year. The company’s long-term debt was $4,769 million at the end of the year, down around 7% year over year.
Operating cash flow was $3,481 million for the year, down around 20% year over year.
Guidance
For 2023, Barrick anticipates attributable gold production in the range of 4.2-4.6 million ounces, compared with 4.14 million ounces it produced in 2022. It sees stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge.
The company expects AISC in the range of $1,170-$1,250 per ounce, cash costs per ounce in the band of $820-$880 per ounce and cost of sales in the band of $1,170-$1,250 per ounce for 2023.
The company also projects copper production in the range of 420-470 million pounds for 2023, compared with 440 million pounds it produced in 2022. It also sees copper AISC of $2.95-$3.25 per pound and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected between $2,200 million and $2,600 million for 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -26.02% due to these changes.
VGM Scores
Currently, Barrick Gold has a subpar Growth Score of D, though it is lagging a bit 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 D. 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. Notably, 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 2.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 2.7% 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 catalysts.
Barrick's Earnings Beat Estimates in Q4, Revenues Lag
Barrick slipped to a net loss (on a reported basis) of $735 million or 42 cents per share in fourth-quarter 2022, from a profit of $726 million or 41 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 13 cents. The figure beat the Zacks Consensus Estimate of 12 cents.
Barrick recorded sales of $2,774 million, down around 16% year over year. The figure missed the Zacks Consensus Estimate of $3,145.6 million.
The results in the reported quarter were hurt by lower year over year gold production, higher costs and lower gold and copper prices.
Operational Highlights
Total gold production was 1,120,000 ounces in the reported quarter, down around 7% year over year and up 13% sequentially. 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.
Fourth-quarter gold sales were 1,111,000 ounces, down around 10% year over year.
Average realized price of gold was $1,728 per ounce in the quarter, down around 4% year over year.
Cost of sales increased around 23% year over year to $1,324 per ounce.
AISC moved up around 28% year over year to $1,242 per ounce in the quarter.
Copper production declined around 24% year over year to 96 million pounds. Average realized copper price was $3.81 per pound, down around 18% year over year.
FY22 Results
Earnings for full-year 2022 were 24 cents per share compared with $1.14 per share a year ago. Net sales fell 8% year over year to $11,013 million.
Financial Position
At the end of 2022, Barrick had cash and cash equivalents of $4,440 million, down around 16% year over year. The company’s long-term debt was $4,769 million at the end of the year, down around 7% year over year.
Operating cash flow was $3,481 million for the year, down around 20% year over year.
Guidance
For 2023, Barrick anticipates attributable gold production in the range of 4.2-4.6 million ounces, compared with 4.14 million ounces it produced in 2022. It sees stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge.
The company expects AISC in the range of $1,170-$1,250 per ounce, cash costs per ounce in the band of $820-$880 per ounce and cost of sales in the band of $1,170-$1,250 per ounce for 2023.
The company also projects copper production in the range of 420-470 million pounds for 2023, compared with 440 million pounds it produced in 2022. It also sees copper AISC of $2.95-$3.25 per pound and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected between $2,200 million and $2,600 million for 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -26.02% due to these changes.
VGM Scores
Currently, Barrick Gold has a subpar Growth Score of D, though it is lagging a bit 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 D. 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. Notably, Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.