Back to top

Analyst Blog

Zacks Equity Research

Mining Stocks' Q1 Earnings Slated on Apr 24: ABX, NEM, SLCA

NEM ABX SLCA

Trades from $3
Read Full ArticleHide Full Article

A few mining companies are gearing up to report their quarterly numbers on Apr 24. The first-quarter earnings season has got off to a solid start thanks largely to strong results from finance stocks.

Total earnings for the 57 S&P 500 members that reported till Apr 19 were up 18.7% year over year on 6.4% higher revenues, per the latest Earnings Outlook. The overall growth pace for the quarter has improved over the last few days with total first-quarter earnings now expected to be up 8.6%. Revenues are also expected to rise 6.2%.

As per the Zacks Industry classification, the mining industry is grouped under the broader Basic Materials sector. Based on the earnings scorecard as of Apr 19, 5% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies increased by a solid 31.6% from the same period last year on 12% higher revenues.

The Basic Materials sector is one of the only three sectors that are projected to witness double-digit earnings growth in the first quarter. Overall earnings for the sector are projected to rise 10.6% while revenues are expected to increase 2.1%.

The mining industry regained its ground last year after a harrowing 2015 that bore the brunt of a crash in the commodity prices. The turnaround can primarily be attributed to the commodity upturn that helped investors renew their interest in the industry.

Let’s peek into three mining companies that are slated to report first-quarter results on Apr 24.

Barrick Gold Corporation (ABX - Free Report) will report its results after the bell. The company has an Earnings ESP of -8.70% as the Most Accurate estimate stands at 21 cents while the Zacks Consensus Estimate is pegged at 23 cents. The company carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Barrick beat estimates in three of the trailing four quarters while reported in line on the other occasion. In this timeframe, it delivered an average positive surprise of 10.27%.

Barrick Gold Corporation Price and EPS Surprise

 

Barrick Gold Corporation Price and EPS Surprise | Barrick Gold Corporation Quote

Newmont Mining Corporation (NEM - Free Report) , which will report quarterly results after the close, is expected to come up with a positive earnings surprise as it carries a Zacks Rank #3 and an Earnings ESP of +21.74%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed in one and reported in line on the other occasion. In this timeframe, it delivered an average positive surprise of 25.92%. Newmont continues to invest in growth projects that are anticipated to boost its production performance. Additionally, the company is making significant progress with its cost and efficiency improvement programs. (Read more: Newmont to Report Q1 Earnings: A Beat in the Cards?).

U.S. Silica Holdings, Inc. (SLCA - Free Report) will report earnings numbers after the bell. The company has an Earnings ESP of -16.67% as the Most Accurate estimate stands at 5 cents while the Zacks Consensus Estimate is pegged at 6 cents. Although the stock carries a Zacks Rank #1, its negative ESP makes surprise prediction difficult.

U.S. Silica has an impressive surprise history. It beat estimates in all the trailing four quarters with an average beat of 24.95%. U.S. Silica is expected to gain from its strategic investments, earnings accretive acquisitions and cost improvement actions. (Read more: What's in the Cards for U.S. Silica in Q1 Earnings?)

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>
 




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Newmont Mining Corporation (NEM) - free report >>

Barrick Gold Corporation (ABX) - free report >>

U.S. Silica Holdings, Inc. (SLCA) - free report >>