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Is Agnico Eagle Stock a Smart Buy Before Q2 Earnings Release?
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Key Takeaways
Agnico Eagle is expected to report Q2 earnings of $1.69 per share, up 57.9% year over year.
Higher realized gold prices and solid production at LaRonde, Macassa and Nunavut likely drove gains.
AEM shares have surged 70.2% in a year, outperforming the industry while trading at a premium valuation.
Agnico Eagle Mines Limited (AEM - Free Report) is slated to report second-quarter 2025 results after the closing bell on July 30. The company’s performance is expected to reflect the benefits of higher gold prices and strong production.
The Zacks Consensus Estimate for second-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $1.69 per share, suggesting a 57.9% year-over-year rise. The Zacks Consensus Estimate for revenues currently stands at $2.55 billion, indicating a 22.9% rise on a year-over-year basis.
Image Source: Zacks Investment Research
AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of roughly 12.3%.
Image Source: Zacks Investment Research
Q2 Earnings Whispers for AEM Stock
Our proven model predicts an earnings beat for AEM this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The benefits of higher gold prices are expected to reflect on the company’s performance in the second quarter. Gold prices have racked up strong gains this year as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid an intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. Prices of the yellow metal rocketed to a record high of $3,500 per ounce on April 22. While gold prices retreated from their April 2025 highs, they closed the second quarter above the $3,300 per ounce level, and are up roughly 27% so far this year. Our estimate for AEM’s realized gold prices is $2,929 per ounce for the quarter, suggesting a 25.1% year-over-year increase.
Continued strong gold production is likely to have supported the company’s performance. Strong production at LaRonde on higher grades and efforts to improve productivity at Macassa are likely to have aided production. AEM is also expected to have witnessed continued solid performance in its Nunavut operations. Our estimate for payable gold production is pegged at 866,598 ounces for the second quarter.
While AEM’s all-in-sustaining costs (AISC) declined in the first quarter due to the deferral of certain sustaining capital expenditures, it expects the same to increase for the remainder of 2025. AEM forecasts AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While AEM is taking actions to control costs, higher costs are likely to have weighed on its second-quarter performance. Our estimate for AISC for gold is pegged at $1,212 per ounce, indicating a 2.5% sequential and 3.6% year-over-year increase.
AEM Stock’s Price Performance and Valuation
Thanks to the rally in gold prices and solid earnings performance, AEM’s shares have performed impressively on the bourses over the past year. Its shares have surged 70.2% in a year, topping the Zacks Mining – Gold industry’s 43.5% rise and the S&P 500’s increase of 17.3%. With respect to its major gold mining peers, Barrick Mining Corporation (B - Free Report) , Newmont Corporation (NEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) have rallied 21%, 39.1% and 83.7%, respectively, over the same period.
AEM’s One-year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Agnico Eagle is currently trading at a forward 12-month earnings multiple of 18.62, a roughly 46.3% premium to the peer group average of 12.73X. AEM is also trading at a premium to Barrick Mining, Newmont and Kinross Gold. Agnico Eagle has a Value Score of C. Both Barrick Mining and Kinross Gold have a Value Score of A, while Newmont has a Value Score of B. AEM’s stretched valuation should not scare investors away, considering the company’s healthy earnings trajectory.
AEM’s P/E F12M Vs. Industry, B, NEM & KGC
Image Source: Zacks Investment Research
Investment Thesis for AEM Stock
Agnico Eagle is well-placed for growth on the advancement of its key value drivers and pipeline projects, including Odyssey, Detour Lake and Hope Bay, which are expected to provide additional growth in production and cash flows. The merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer with an extensive pipeline of development and exploration projects to drive sustainable growth.
AEM has a strong liquidity position and generates substantial cash flows, which allows it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Rallying gold prices should also boost AEM’s profitability and cash flow generation.
Final Thoughts: Buy AEM Shares
With a strong pipeline of growth projects, solid financial health, a healthy growth trajectory and rising earnings estimates, AEM stock presents a compelling investment case ahead of its earnings announcement for those seeking exposure to the gold mining space. Backed by a positive earnings outlook, AEM is a prudent choice to bet on for those looking to capitalize on favorable gold market conditions.
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Is Agnico Eagle Stock a Smart Buy Before Q2 Earnings Release?
Key Takeaways
Agnico Eagle Mines Limited (AEM - Free Report) is slated to report second-quarter 2025 results after the closing bell on July 30. The company’s performance is expected to reflect the benefits of higher gold prices and strong production.
The Zacks Consensus Estimate for second-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $1.69 per share, suggesting a 57.9% year-over-year rise. The Zacks Consensus Estimate for revenues currently stands at $2.55 billion, indicating a 22.9% rise on a year-over-year basis.
AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of roughly 12.3%.
Q2 Earnings Whispers for AEM Stock
Our proven model predicts an earnings beat for AEM this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AEM has an Earnings ESP of +7.97% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping AEM’s Q2 Results
The benefits of higher gold prices are expected to reflect on the company’s performance in the second quarter. Gold prices have racked up strong gains this year as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid an intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. Prices of the yellow metal rocketed to a record high of $3,500 per ounce on April 22. While gold prices retreated from their April 2025 highs, they closed the second quarter above the $3,300 per ounce level, and are up roughly 27% so far this year. Our estimate for AEM’s realized gold prices is $2,929 per ounce for the quarter, suggesting a 25.1% year-over-year increase.
Continued strong gold production is likely to have supported the company’s performance. Strong production at LaRonde on higher grades and efforts to improve productivity at Macassa are likely to have aided production. AEM is also expected to have witnessed continued solid performance in its Nunavut operations. Our estimate for payable gold production is pegged at 866,598 ounces for the second quarter.
While AEM’s all-in-sustaining costs (AISC) declined in the first quarter due to the deferral of certain sustaining capital expenditures, it expects the same to increase for the remainder of 2025. AEM forecasts AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While AEM is taking actions to control costs, higher costs are likely to have weighed on its second-quarter performance. Our estimate for AISC for gold is pegged at $1,212 per ounce, indicating a 2.5% sequential and 3.6% year-over-year increase.
AEM Stock’s Price Performance and Valuation
Thanks to the rally in gold prices and solid earnings performance, AEM’s shares have performed impressively on the bourses over the past year. Its shares have surged 70.2% in a year, topping the Zacks Mining – Gold industry’s 43.5% rise and the S&P 500’s increase of 17.3%. With respect to its major gold mining peers, Barrick Mining Corporation (B - Free Report) , Newmont Corporation (NEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) have rallied 21%, 39.1% and 83.7%, respectively, over the same period.
AEM’s One-year Price Performance
From a valuation standpoint, Agnico Eagle is currently trading at a forward 12-month earnings multiple of 18.62, a roughly 46.3% premium to the peer group average of 12.73X. AEM is also trading at a premium to Barrick Mining, Newmont and Kinross Gold. Agnico Eagle has a Value Score of C. Both Barrick Mining and Kinross Gold have a Value Score of A, while Newmont has a Value Score of B. AEM’s stretched valuation should not scare investors away, considering the company’s healthy earnings trajectory.
AEM’s P/E F12M Vs. Industry, B, NEM & KGC
Investment Thesis for AEM Stock
Agnico Eagle is well-placed for growth on the advancement of its key value drivers and pipeline projects, including Odyssey, Detour Lake and Hope Bay, which are expected to provide additional growth in production and cash flows. The merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer with an extensive pipeline of development and exploration projects to drive sustainable growth.
AEM has a strong liquidity position and generates substantial cash flows, which allows it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Rallying gold prices should also boost AEM’s profitability and cash flow generation.
Final Thoughts: Buy AEM Shares
With a strong pipeline of growth projects, solid financial health, a healthy growth trajectory and rising earnings estimates, AEM stock presents a compelling investment case ahead of its earnings announcement for those seeking exposure to the gold mining space. Backed by a positive earnings outlook, AEM is a prudent choice to bet on for those looking to capitalize on favorable gold market conditions.