A month has gone by since the last earnings report for Agnico Eagle Mines Limited (AEM - Free Report) . Shares have added about 1.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is AEM 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's Q1 Earnings Lag, Sales Beat Estimates
Agnico Eagle reported net income of $44.9 million or 19 cents per share for the first quarter of 2018, down 41% from year-ago quarter’s net income of $76 million or 33 cents.
Barring one-time items, earnings for the quarter were 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents.
Agnico Eagle recorded revenues of $578.4 million in the first quarter of 2018, up about 5.7% from $547.5 million in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $557 million.
Payable gold production in the first quarter fell 6.9% year over year to 389,278 ounces from 418,216 ounces in the year-ago quarter. The decline is mainly due to lower throughput levels at Meadowbank.
Total cash costs per ounce for the first quarter were $648, up 20.2% from the prior-year quarter figure of $539.
AISC was $889 for the first quarter, 20% higher compared to the prior-year quarter figure of $741. This is mainly due to expected lower gold production and higher total cash costs per ounce.
As of Mar 31, 2018, cash and cash equivalents were around $452.3 million, up 43% from year-ago quarter.
Long-term debt was $1,372.4 million at the end of the quarter, up 27.9% from $1,073.4 million the year ago quarter.
There was no outstanding balance on credit facility as of Mar 31, 2018. This resulted in available credit lines of roughly $1.2 billion, excluding the uncommitted $300 million accordion feature.
Total capital expenditure in the first quarter was $179.4 million.
Agnico Eagle has reiterated its previous guidance for total cash costs for full-year 2018 that is expected in the range of $625-$675 per ounce. AISC is expected in the range of $890-$940 per ounce for 2018.
The company’s production guidance for 2018 remains unchanged at 1.53 million ounces of gold.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.
At this time, AEM has a subpar Growth Score of D. Its Momentum is doing a bit better with a C. The stock was also 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, AEM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.