The mining industry seems to have found its footing this year after a difficult 2015 that bore the brunt of a crash in the commodity prices. Particularly, silver and gold have been major movers this year, gaining 31% and 19% respectively so far owing to the slowdown in China, volatile equity markets due to Brexit, a dovish Fed and the introduction of negative interest rates by several central banks (including Japan).
As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. As of Nov 4, 85% of the companies in this sector that have reported so far have put up a 6.4% increase in earnings. Combining with the projected figures of the companies that are yet to report, the sector will log a growth of 4.2% in the quarter.
The 84.6% of the companies in the S&P 500 that have reported registered an earnings growth of 3.6%. Taking into consideration the estimates from the still-to-come 77 index members, total earnings in the quarter is now anticipated to go up 3% year over year on the back of 1.5% higher revenues. This compares favorably with the decline of 2.8% in the second quarter on flat revenues. Though the growth rate is meager, but compared to the declines for five consecutive quarters, this is definitely a positive sign. (Read more: Q3 Earnings Season: An Inflection Point)
Let’s see what’s in store for these miners that are set to report quarterly numbers on Nov 9.
Silver Wheaton Corp. operates as a precious metals streaming company worldwide. It is the only mining company with 100% of its revenues coming from silver production. It will report third-quarter 2016 numbers after the market closes.
The company had delivered in-line results in the second quarter. Silver Wheaton has a mixed earnings track record and delivered an average negative earnings surprise of 3.53% over the trailing four quarters.
SILVER WHEATON Price and EPS Surprise
The Zacks Consensus Estimate for the quarter is pegged at 1 cent, a 130% year-over-year climb. Surprise prediction is difficult for Sandstorm Gold given its Earnings ESP of 0.00% and Zacks Rank #3. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The company is on track to meet its 2016 gold production guidance of $43,000 to $50,000 gold equivalent ounces. The company’s balance sheet is debt-free with strong capital coming from a highly diversified asset base along with significant availed capital to continue its growth objectives.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>