A month has gone by since the last earnings report for Agnico Eagle Mines Limited (AEM - Free Report) . Shares have added about 7.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 drivers.
Agnico-Eagle Earnings & Revenues Beat Estimates in Q2
Agnico-Eagle reported a net income of $61.9 million or $0.26 per share in the second quarter of 2017, compared with net income of $19 million or $0.08 recorded in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of $0.17.
Revenues and Operational Highlights
Agnico-Eagle recorded revenues of $550 million in the second quarter of 2017, up 2.2% from $538 million in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $500 million.
Payable gold production in the second quarter improved 4.6% year over year to 427,743 ounces from 408,932 ounces in the year-ago quarter owing to higher grades mined at Meadowbank and Canadian Malartic.
Total cash costs per ounce for the second quarter was $556, down 6% from the prior-year quarter figure of $592.
AISC were $785 for the second quarter, lower than the prior-year quarter figure of $848. This is mainly due to lower total cash costs per ounce and reduced sustaining capital expenditures on a year-over-year basis.
As of June 30, 2017, cash and cash equivalents were around $952.4 million, up 387.4% from year-ago quarter. Long-term debt was $1,371.9 million in the reported quarter up 27.9% from the prior-year quarter.
There was no outstanding balance on Agnico Eagle’s credit facility as of Jun 30, 2017. This resulted in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditures in the reported quarter was $226.3 million.
Agnico-Eagle expects total cash costs in the range of $580–$610, down from the previous guidance of $595–$625 per ounce. AISC is anticipated to be in the range of $830–$880 per ounce in 2017, lower than previous guidance of $850–$900 per ounce. The company anticipates production to be 1.62 million ounces in 2017 compared with the previous guidance of 1.57 million ounces.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
At this time, Agnico Eagle's stock has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 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.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.