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Barrick Gold (GOLD) Up 9.2% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Barrick Gold 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.

Barrick's Q1 Earnings Beat, Revenues Miss Estimates

Barrick recorded net earnings of $111 million or 6 cents per share in first-quarter 2019, down from $158 million or 14 cents in the year-ago quarter. 

Barring one-time items, adjusted earnings per share (EPS) came in at 11 cents, which beat the Zacks Consensus Estimate of 10 cents.

Barrick recorded revenues of $2,093 million, up roughly 17% year over year. However, the figure trailed the Zacks Consensus Estimate of $2,160 million.

Operational Highlights

Total gold production was around 1.37 million ounces in the quarter, up roughly 30% year over year. Average realized price of gold fell around 2% year over year to $1,307 per ounce.

Cost of sales per ounce went up roughly 8% year over year to $947 million. AISC rose 3% to $825 per ounce in the quarter.

Copper production increased 25% year over year to 106 million pounds. Average realized copper price was $3.07 per pound, up 3% year over year.

Financial Position

As of Mar 31, 2019, the company had cash and cash equivalents of $2,153 million, down roughly 9.7% year over year. Long-term debt was $5,499 million at the end of the first quarter. 

Net cash provided by operating activities rose 2.6% year over year to $520 million.

Guidance

Barrick stated that its key growth projects were on track. Also, brownfields and greenfields exploration were boosting reserves and enabling the company to identify new opportunities.

For 2019, the company anticipates gold production in the range of 5.1-5.6 million ounces at AISC of $870-$920 per ounce and cost of sales of $910-$970 per ounce.

The company expects copper production in the range of 375-430 million pounds at AISC of $2.40-$2.90 per pound and at cost of sales of $2.30-$2.70 per pound. 

Capital expenditure is projected between $1,400 million and $1,700 million.
 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, Barrick Gold has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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.

Outlook

Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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