Back to top

Image: Bigstock

AEM to Report Q3 Earnings: What's in the Offing for the Stock?

Read MoreHide Full Article

Key Takeaways

  • Agnico Eagle reports Q3 results on Oct. 28, after the closing bell, following four straight earnings beats.
  • Higher realized gold prices are expected to boost results, with Q3 sales estimated at $3.53 billion.
  • Barnat pit disruptions may weigh on third-quarter output, while rising costs pressure profitability.

Agnico Eagle Mines Limited (AEM - Free Report) is slated to report third-quarter 2026 results after the closing bell on Oct. 28. 

AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being roughly 9.9%. Its third-quarter results are expected to reflect the benefits of higher realized gold prices amid cost and production headwinds.

AEM’s shares have gained 12.1% in a year, underperforming the Zacks Mining – Gold industry’s 13.8% rise.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement.

What do AEM’s Revenue Estimates Indicate?

The Zacks Consensus Estimate for AEM’s third-quarter consolidated sales is currently pegged at $3,533.3 million, calling for an increase of 16.1% from the year-ago quarter’s tally.

Factors Shaping AEM’s Q3 Results

The benefits of higher realized gold prices are expected to reflect on the company’s third-quarter performance. However, the pricing tailwind is likely to have been weaker in the third quarter compared with the second quarter.

Although gold prices have retreated sharply from their January 2026 peak, they remain at supportive levels. Gold came under renewed pressure after reaching a more than three-month high near $4,650 per ounce in late August 2026. Bullion prices fell toward $4,300 an ounce following the U.S. Federal Reserve’s interest rate hike, its first in more than three years, and expectations of another increase before the year-end. A stronger U.S. dollar and inflation worries stemming from an uptick in oil prices amid concerns over supply disruptions put pressure on gold in September. 

Bullion closed the third quarter at around $4,150 per ounce, roughly 8% higher year over year. Our estimate for the realized gold price for the third quarter for AEM is pegged at $4,314 per ounce, indicating a 24.1% year-over-year increase.

Meanwhile, Agnico Eagle saw less production in the first half of 2026 due to lower grades and throughput across certain mines. Production also fell in the second quarter, impacted by reduced production from Canadian Malartic. Barnat pit wall movement is a key near-term operational risk. A rock mass movement at the Barnat open pit at Canadian Malartic involved roughly one million tons of material. Mining was suspended at the pit, with a resumption anticipated in the fourth quarter. The event is projected to reduce gold production at Canadian Malartic by 60,000-80,000 ounces in the second half of 2026, and is likely to have impacted the third-quarter output. 

Higher production costs are likely to have weighed on AEM’s profitability. Its all-in-sustaining costs (AISC) — a critical cost metric for miners — were $1,459 per ounce in the second quarter, marking a roughly 14% year-over-year rise, impacted by higher total cash costs and an uptick in sustaining capital expenditures. Total cash costs per ounce for gold were $1,054, 14% higher than $925 a year ago. Total cash costs rose due to increased royalty costs, higher labor and energy costs and lower production.  While Agnico Eagle is taking action to control costs, the inflationary pressure is likely to have continued in the third quarter, weighing on its overall financial performance.

Our estimate for AISC on a by-product basis stands at $1,467 per ounce for the third quarter, which indicates a 6.8% year-over-year increase.

Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote

What Our Model Unveils for AEM Stock

Our proven model does not conclusively predict an earnings beat for Agnico Eagle 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.

Earnings ESP: Earnings ESP for AEM is -0.21%. The Zacks Consensus Estimate for the third quarter is currently pinned at $2.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AEM currently carries a Zacks Rank #4 (Sell).

Basic Materials Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:

Freeport-McMoRan Inc. (FCX - Free Report) , scheduled to release earnings on Oct. 27, has an Earnings ESP of +0.63% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for FCX’s earnings for the third quarter is currently pegged at 80 cents.

DuPont de Nemours, Inc. (DD - Free Report) , scheduled to release earnings on Nov. 3, has an Earnings ESP of +1.35%.

The Zacks Consensus Estimate for DD’s earnings for the third quarter is currently pegged at $1.86. DD currently carries a Zacks Rank #3. 

Huntsman Corporation (HUN - Free Report) , slated to release earnings on Nov. 2, has an Earnings ESP of +36.14% and carries a Zacks Rank #3 at present.

The consensus mark for HUN’s third-quarter earnings is currently pegged at 7 cents.

Published in