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Barrick (GOLD) to Post Q2 Earnings: What's in the Cards?

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Barrick Gold Corporation (GOLD - Free Report) is set to release second-quarter 2019 results on Aug 12, before the opening bell.

The stock has surged 66.2% in the past year compared with the industry’s 46.2% rally.



What the Zacks Model Says

Our proven model shows that Barrick is likely to beat estimates in the to-be-reported quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is the case here as you will see below:

Earnings ESP: Earnings ESP for Barrick is +0.70%. The Zacks Consensus Estimate is currently pegged at 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Barrick currently carries a Zacks Rank #2, which when combined with a positive ESP makes us reasonably confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Barrick Gold Corporation Price and EPS Surprise

 

Barrick Gold Corporation Price and EPS Surprise

Barrick Gold Corporation price-eps-surprise | Barrick Gold Corporation Quote

 

Factors at Play in Q2

The Zacks Consensus Estimate for second-quarter total revenues for Barrick is currently pegged at $2,091 million, which indicates 22.1% increase year over year.

In July, the company announced preliminary production results for second-quarter 2019.

Preliminary gold sales and production in the to-be-reported quarter were 1.37 million ounces and 1.35 million ounces, respectively. Average market price for gold was $1,309 per ounce. Preliminary copper production totaled 97 million pounds. Average market price for copper was $2.77 per pound in the second quarter.

The company stated that preliminary second-quarter gold sales and production were driven by strong performances from Loulo-Gounkoto and Veladero, offset by lower production at Barrick Nevada as well as production interruptions at Pueblo Viejo. Also, the projected figures do not include the impact of the Nevada Gold Mines joint venture transaction that was successfully completed on Jul 1, 2019. It expects the deal to make positive impact on the production outlook for 2019.

Barrick expects gold costs per ounce in the second quarter to be marginally higher on sequential comparison basis.

Other Stocks Poised to Beat Estimates

Here are some other companies that you may want to consider as our model shows that they also have the right combination of elements to post a beat this time around:

Evolus, Inc. (EOLS - Free Report) has an Earnings ESP of +27.75% and carries a Zacks Rank #3.

Abercrombie & Fitch Company (ANF - Free Report) has an Earnings ESP of +1.50% and carries a Zacks Rank #3.

IAA, Inc. has an Earnings ESP of +0.28% and a Zacks Rank #3.

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