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Should You Buy, Sell or Hold AEM Stock Ahead of Q1 Earnings?
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Key Takeaways
Agnico Eagle is set to report Q1 2026 results on April 30 after the closing bell.
Higher gold prices and strong production likely boosted AEM's quarterly performance.
AEM's Q1 earnings are estimated at $3.26 per share on $4 billion in revenues.
Agnico Eagle Mines Limited (AEM - Free Report) is slated to report first-quarter 2026 results after the closing bell on April 30. Its results are expected to reflect the benefits of higher gold prices and strong production amid cost headwinds.
The Zacks Consensus Estimate for first-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $3.26 per share, suggesting a 113.1% rise from the prior-year reported number. The Zacks Consensus Estimate for revenues currently stands at $4 billion, indicating a 62.4% increase 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, with the average being roughly 10.8%.
Image Source: Zacks Investment Research
Q1 Earnings Whispers for AEM
Our proven model does not conclusively predict an earnings beat for AEM this season. 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. But that’s not the case here. 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 first-quarter performance. Gold carried strong momentum into 2026 after soaring 65% in 2025. U.S.-Iran tensions, a weaker U.S. dollar and concerns over the Federal Reserve’s independence drove bullion to record highs, with prices climbing to nearly $5,600 per ounce in late January. However, aggressive profit-taking and a rebound in the dollar triggered a short-lived pullback, pushing gold below $4,900 per ounce.
Gold regained strength early last month, rallying past $5,400 per ounce on March 2 as safe-haven demand surged following joint U.S.-Israel strikes on Iran. But a stronger dollar, inflation concerns stemming from higher oil prices and the Fed’s hawkish stance pressured gold later in March, sending prices down to around $4,400 per ounce on March 26. Gold then rebounded to close the month above $4,600 per ounce, though it still ended March 12% lower. Despite the sharp decline in March, gold prices finished the first quarter up roughly 7%.
Continued strong gold production is likely to have supported the company’s performance. Solid production at LaRonde, Detour Lake and Canadian Malartic on higher gold grades is expected to have aided its production. Our estimate for payable gold production is pegged at 859,426 ounces for the first quarter.
Higher production costs are likely to have weighed on AEM’s profitability. Its all-in-sustaining costs (AISC) — a critical cost metric for miners — increased roughly 10% from the prior quarter and 15% year over year to $1,517 per ounce in the fourth quarter. AISC increased year over year due to higher total cash costs and an uptick in sustaining capital expenditures. Total cash costs per ounce for gold were $1,089, 18% higher than $923 a year ago and higher than $994 in the prior quarter. Total cash costs of $979 per ounce and AISC of $1,339 per ounce for 2025 were also above the top end of AEM’s guidance due to increased royalty costs.
AEM forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges. Cash costs are expected to increase in 2026, partly due to higher royalty costs, cost inflation (including higher labor and electricity costs) and lower grades across certain mines.
AEM Stock’s Price Performance and Valuation
AEM’s shares have surged 70.2% in a year, underperforming the Zacks Mining – Gold industry’s 83.1% rise, while topping the S&P 500’s increase of 32.9%. 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 115.1%, 119.1% and 120.2%, 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 14.94, a roughly 26% premium to the peer group average of 11.86X. AEM is also trading at a premium to Barrick Mining, Newmont and Kinross Gold. Agnico Eagle has a Value Score of D. Barrick Mining, Newmont and Kinross Gold have a Value Score of B, each.
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. Higher gold prices should also boost AEM’s profitability and cash flow generation.
Agnico Eagle, however, is exposed to higher production costs, which may weigh on its profit margins and overall financial performance. This calls for prudent cost management to maintain competitiveness and sustain margins.
Final Thoughts: Hold Onto AEM Shares
AEM is backed by a solid lineup of growth initiatives and a healthy balance sheet. Elevated gold prices should support stronger margins and improved cash flow. Strong earnings growth expectations and rising earnings estimates are the other positives. However, elevated cost levels remain a concern. The company’s stretched valuation also might not offer an attractive entry point at this time. Holding onto the AEM stock will be prudent for investors who already own it, awaiting greater visibility on the company’s prospects after the upcoming earnings report.
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Should You Buy, Sell or Hold AEM Stock Ahead of Q1 Earnings?
Key Takeaways
Agnico Eagle Mines Limited (AEM - Free Report) is slated to report first-quarter 2026 results after the closing bell on April 30. Its results are expected to reflect the benefits of higher gold prices and strong production amid cost headwinds.
The Zacks Consensus Estimate for first-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $3.26 per share, suggesting a 113.1% rise from the prior-year reported number. The Zacks Consensus Estimate for revenues currently stands at $4 billion, indicating a 62.4% increase on a year-over-year basis.
AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being roughly 10.8%.
Q1 Earnings Whispers for AEM
Our proven model does not conclusively predict an earnings beat for AEM this season. 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. But that’s not the case here. 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 -2.32% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping AEM’s Q1 Results
The benefits of higher gold prices are expected to reflect on the company’s first-quarter performance. Gold carried strong momentum into 2026 after soaring 65% in 2025. U.S.-Iran tensions, a weaker U.S. dollar and concerns over the Federal Reserve’s independence drove bullion to record highs, with prices climbing to nearly $5,600 per ounce in late January. However, aggressive profit-taking and a rebound in the dollar triggered a short-lived pullback, pushing gold below $4,900 per ounce.
Gold regained strength early last month, rallying past $5,400 per ounce on March 2 as safe-haven demand surged following joint U.S.-Israel strikes on Iran. But a stronger dollar, inflation concerns stemming from higher oil prices and the Fed’s hawkish stance pressured gold later in March, sending prices down to around $4,400 per ounce on March 26. Gold then rebounded to close the month above $4,600 per ounce, though it still ended March 12% lower. Despite the sharp decline in March, gold prices finished the first quarter up roughly 7%.
Continued strong gold production is likely to have supported the company’s performance. Solid production at LaRonde, Detour Lake and Canadian Malartic on higher gold grades is expected to have aided its production. Our estimate for payable gold production is pegged at 859,426 ounces for the first quarter.
Higher production costs are likely to have weighed on AEM’s profitability. Its all-in-sustaining costs (AISC) — a critical cost metric for miners — increased roughly 10% from the prior quarter and 15% year over year to $1,517 per ounce in the fourth quarter. AISC increased year over year due to higher total cash costs and an uptick in sustaining capital expenditures. Total cash costs per ounce for gold were $1,089, 18% higher than $923 a year ago and higher than $994 in the prior quarter. Total cash costs of $979 per ounce and AISC of $1,339 per ounce for 2025 were also above the top end of AEM’s guidance due to increased royalty costs.
AEM forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges. Cash costs are expected to increase in 2026, partly due to higher royalty costs, cost inflation (including higher labor and electricity costs) and lower grades across certain mines.
AEM Stock’s Price Performance and Valuation
AEM’s shares have surged 70.2% in a year, underperforming the Zacks Mining – Gold industry’s 83.1% rise, while topping the S&P 500’s increase of 32.9%. 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 115.1%, 119.1% and 120.2%, 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 14.94, a roughly 26% premium to the peer group average of 11.86X. AEM is also trading at a premium to Barrick Mining, Newmont and Kinross Gold. Agnico Eagle has a Value Score of D. Barrick Mining, Newmont and Kinross Gold have a Value Score of B, each.
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. Higher gold prices should also boost AEM’s profitability and cash flow generation.
Agnico Eagle, however, is exposed to higher production costs, which may weigh on its profit margins and overall financial performance. This calls for prudent cost management to maintain competitiveness and sustain margins.
Final Thoughts: Hold Onto AEM Shares
AEM is backed by a solid lineup of growth initiatives and a healthy balance sheet. Elevated gold prices should support stronger margins and improved cash flow. Strong earnings growth expectations and rising earnings estimates are the other positives. However, elevated cost levels remain a concern. The company’s stretched valuation also might not offer an attractive entry point at this time. Holding onto the AEM stock will be prudent for investors who already own it, awaiting greater visibility on the company’s prospects after the upcoming earnings report.