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Barrick Gold (GOLD) Down 3.9% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Barrick Gold due for a breakout? 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 Q2 Earnings Surpass Estimates, Sales Miss
Barrick recorded net earnings (on a reported basis) of $305 million or 17 cents per share in second-quarter 2023, down from $488 million or 27 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 17 cents.
Barrick recorded total sales of $2,833 million, down 0.9% year over year. The figure missed the Zacks Consensus Estimate of $3,397 million.
Operational Highlights
Total gold production was 1,009,000 ounces in the reported quarter, down around 3% year over year. Our estimate for the same was 1,074,000 ounces. The average realized price of gold was $1,972 per ounce in the quarter, up around 6% year over year.
The cost of sales increased around 9% year over year to $1,323 per ounce. AISC moved up around 12% year over year to $1,355 per ounce in the quarter.
Copper production decreased roughly 11% year over year to 107 million pounds. Our estimate for the quarter was pegged at 118 million pounds. The average realized copper price was $3.70 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,157 million, down 28% year over year. The company’s total debt was $4,774 million at the end of the quarter, down 7% year over year.
The operating cash flow was $832 million for the quarter, whereas the free cash flow was $63 million.
Guidance
For 2023, Barrick anticipates attributable gold production of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce and cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
Barrick expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditure is projected between $2,200 million and $2,600 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 8.28% due to these changes.
VGM Scores
Currently, Barrick Gold has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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
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) Down 3.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Barrick Gold due for a breakout? 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 Q2 Earnings Surpass Estimates, Sales Miss
Barrick recorded net earnings (on a reported basis) of $305 million or 17 cents per share in second-quarter 2023, down from $488 million or 27 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 17 cents.
Barrick recorded total sales of $2,833 million, down 0.9% year over year. The figure missed the Zacks Consensus Estimate of $3,397 million.
Operational Highlights
Total gold production was 1,009,000 ounces in the reported quarter, down around 3% year over year. Our estimate for the same was 1,074,000 ounces. The average realized price of gold was $1,972 per ounce in the quarter, up around 6% year over year.
The cost of sales increased around 9% year over year to $1,323 per ounce. AISC moved up around 12% year over year to $1,355 per ounce in the quarter.
Copper production decreased roughly 11% year over year to 107 million pounds. Our estimate for the quarter was pegged at 118 million pounds. The average realized copper price was $3.70 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,157 million, down 28% year over year. The company’s total debt was $4,774 million at the end of the quarter, down 7% year over year.
The operating cash flow was $832 million for the quarter, whereas the free cash flow was $63 million.
Guidance
For 2023, Barrick anticipates attributable gold production of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce and cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
Barrick expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditure is projected between $2,200 million and $2,600 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 8.28% due to these changes.
VGM Scores
Currently, Barrick Gold has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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
Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.