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Gold Stocks to Watch for Earnings on Oct 24: ABX, AEM, GG
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A few major gold mining companies are slated to report their quarterly numbers tomorrow. The Q3 earnings season has started on a positive note with 84 S&P 500 members (accounting for 22.3% of the index’s total market capitalization) having already reported results as of Oct 19, per the latest Earnings Preview.
Total earnings for these companies are up 19.2% from the year-ago period, while revenues have increased 8.4%. Of the companies that have reported, 82.1% have delivered an earnings beat, while 61.9% have surpassed revenue estimates. Taking into account all the S&P members that are yet to disclose their numbers, total earnings for the index are expected to be up 19.2% in Q3 on 7.2% higher revenues.
Per the Zacks Industry classification, the gold mining industry is grouped under the broader Basic Materials sector. It is among the Zacks sectors that are expected to rack up the strongest gains in Q3. Earnings for the sector are projected to surge 33.5% in Q3 while revenues are expected to go up 14.3%.
Gold prices have lost around 7% so far this year and are now trending just above the psychological level of $1,200. The yellow metal is dulled mainly by a strong U.S. dollar against both developed and emerging market currencies, and escalating global trade tensions. The trade tussle between the United States and China compelled investors to dump emerging market currencies and seek safe haven in dollar. Upbeat U.S. economic data also caused the dollar to rally. A stronger dollar makes dollar-priced gold costlier for non-U.S. investors.
Nevertheless, a few factors are likely to support gold’s performance in the rest of 2018. India, a major consumer, is likely to help gold regain its ground. The second half of the year is seasonally stronger in the country as demand rises around the wedding and festive seasons, when buying gold is considered auspicious. This is likely to give gold prices a boost.
Moreover, the United States continues to be a strong market driven by economic growth, improving employment levels and growth in consumer confidence. A number of new mines also entered production in late 2017, which is likely to support mine production till 2018.
Let’s see what’s in store for the gold mining companies that are gearing up to report quarterly numbers tomorrow.
Barrick Gold Corporation will report its earnings numbers after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 6 cents. It has a Zacks Rank #4 (Sell), which we caution against going into the earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Barrick missed estimates in two of the trailing four quarters, beat once, while reported in line on the other occasion. In this timeframe, it delivered an average negative surprise of 9.4%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,809 million, reflecting an expected decline of 9.2% from the year-ago quarter.
Barrick, earlier this month, released preliminary production results for Q3. Preliminary gold production and sales for Q3 were 1.15 million ounces and 1.20 million ounces, respectively. Average market price for gold during the quarter was $1,213 per ounce. Preliminary copper production and sales totaled 106 million pounds and 114 million pounds, respectively. Average market price for copper was $2.77 per pound.
Notably, preliminary gold sales and production figures for Q3 improved roughly 16% and 8%, respectively, from Q2 figures. The improvement can be attributed to higher grade and throughput at Barrick Nevada.
For Q3, Barrick expects cost of sales per ounce for gold to be roughly 3-5% lower, all-in sustaining costs (AISC) per ounce roughly 7-9% lower and cash costs per ounce to be 1-3% lower on sequential comparison-basis.
Agnico Eagle Mines Limited (AEM - Free Report) will report results after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents. It has a Zacks Rank #4, which we caution against going into the earnings announcement.
Agnico Eagle beat estimates in two of the trailing four quarters while missed twice. In this timeframe, it delivered an average negative surprise of 6%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $491.6 million, reflecting an expected decline of 15.2% from the year-ago quarter.
For Q3, the company’s gold production is expected to decrease roughly 14% year over year as the Zacks Consensus Estimate is currently pegged at 391,000 ounces.
Agnico Eagle faces headwinds from lower expected production and higher costs. Its unit costs are expected to increase this year mainly due to lower expected production on a year-over-year basis. This may affect the company’s margins.
Goldcorp Inc. will report quarterly results after the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 2 cents. It also has a Zacks Rank #4, which we caution against going into the earnings announcement.
Goldcorp missed estimates in three of the trailing four quarters, while reported in line on the other occasion, delivering an average negative surprise of 16.2%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $714.5 million, reflecting an expected decline of 17.5% from the year-ago quarter.
The company’s gold production for Q3 is expected to decrease roughly 7% year over year as the Zacks Consensus Estimate is currently pegged at 588,000 ounces. As such, lower expected production may impact Q3 results.
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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Gold Stocks to Watch for Earnings on Oct 24: ABX, AEM, GG
A few major gold mining companies are slated to report their quarterly numbers tomorrow. The Q3 earnings season has started on a positive note with 84 S&P 500 members (accounting for 22.3% of the index’s total market capitalization) having already reported results as of Oct 19, per the latest Earnings Preview.
Total earnings for these companies are up 19.2% from the year-ago period, while revenues have increased 8.4%. Of the companies that have reported, 82.1% have delivered an earnings beat, while 61.9% have surpassed revenue estimates. Taking into account all the S&P members that are yet to disclose their numbers, total earnings for the index are expected to be up 19.2% in Q3 on 7.2% higher revenues.
Per the Zacks Industry classification, the gold mining industry is grouped under the broader Basic Materials sector. It is among the Zacks sectors that are expected to rack up the strongest gains in Q3. Earnings for the sector are projected to surge 33.5% in Q3 while revenues are expected to go up 14.3%.
Gold prices have lost around 7% so far this year and are now trending just above the psychological level of $1,200. The yellow metal is dulled mainly by a strong U.S. dollar against both developed and emerging market currencies, and escalating global trade tensions. The trade tussle between the United States and China compelled investors to dump emerging market currencies and seek safe haven in dollar. Upbeat U.S. economic data also caused the dollar to rally. A stronger dollar makes dollar-priced gold costlier for non-U.S. investors.
Nevertheless, a few factors are likely to support gold’s performance in the rest of 2018. India, a major consumer, is likely to help gold regain its ground. The second half of the year is seasonally stronger in the country as demand rises around the wedding and festive seasons, when buying gold is considered auspicious. This is likely to give gold prices a boost.
Moreover, the United States continues to be a strong market driven by economic growth, improving employment levels and growth in consumer confidence. A number of new mines also entered production in late 2017, which is likely to support mine production till 2018.
Let’s see what’s in store for the gold mining companies that are gearing up to report quarterly numbers tomorrow.
Barrick Gold Corporation will report its earnings numbers after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 6 cents. It has a Zacks Rank #4 (Sell), which we caution against going into the earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, a company needs to have a Zacks Rank #3 (Hold) or better and a positive Earnings ESP for us to confidently predict an earnings beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barrick missed estimates in two of the trailing four quarters, beat once, while reported in line on the other occasion. In this timeframe, it delivered an average negative surprise of 9.4%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,809 million, reflecting an expected decline of 9.2% from the year-ago quarter.
Barrick, earlier this month, released preliminary production results for Q3. Preliminary gold production and sales for Q3 were 1.15 million ounces and 1.20 million ounces, respectively. Average market price for gold during the quarter was $1,213 per ounce. Preliminary copper production and sales totaled 106 million pounds and 114 million pounds, respectively. Average market price for copper was $2.77 per pound.
Notably, preliminary gold sales and production figures for Q3 improved roughly 16% and 8%, respectively, from Q2 figures. The improvement can be attributed to higher grade and throughput at Barrick Nevada.
For Q3, Barrick expects cost of sales per ounce for gold to be roughly 3-5% lower, all-in sustaining costs (AISC) per ounce roughly 7-9% lower and cash costs per ounce to be 1-3% lower on sequential comparison-basis.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation Price and EPS Surprise | Barrick Gold Corporation Quote
Agnico Eagle Mines Limited (AEM - Free Report) will report results after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents. It has a Zacks Rank #4, which we caution against going into the earnings announcement.
Agnico Eagle beat estimates in two of the trailing four quarters while missed twice. In this timeframe, it delivered an average negative surprise of 6%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $491.6 million, reflecting an expected decline of 15.2% from the year-ago quarter.
For Q3, the company’s gold production is expected to decrease roughly 14% year over year as the Zacks Consensus Estimate is currently pegged at 391,000 ounces.
Agnico Eagle faces headwinds from lower expected production and higher costs. Its unit costs are expected to increase this year mainly due to lower expected production on a year-over-year basis. This may affect the company’s margins.
Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited Price and EPS Surprise | Agnico Eagle Mines Limited Quote
Goldcorp Inc. will report quarterly results after the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 2 cents. It also has a Zacks Rank #4, which we caution against going into the earnings announcement.
Goldcorp missed estimates in three of the trailing four quarters, while reported in line on the other occasion, delivering an average negative surprise of 16.2%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $714.5 million, reflecting an expected decline of 17.5% from the year-ago quarter.
The company’s gold production for Q3 is expected to decrease roughly 7% year over year as the Zacks Consensus Estimate is currently pegged at 588,000 ounces. As such, lower expected production may impact Q3 results.
Goldcorp Inc. Price and EPS Surprise
Goldcorp Inc. Price and EPS Surprise | Goldcorp Inc. Quote
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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