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Yamana (AUY) to Report Q3 Earnings: What's in the Offing?

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Yamana Gold Inc. (AUY - Free Report) is scheduled to release third-quarter 2019 results on Oct 24, after the closing bell.

The company delivered a positive earnings surprise of 100% in the last reported quarter and has an average positive surprise of 83.3% for the trailing four quarters.

The stock has gained 24.6% in a year’s time compared with the industry’s 49% rally.

Factors at Play in Q3

Benefit of higher gold prices is expected to show on Yamana’s third-quarter margins. After a turbulent 2018, gold has had a stellar run in 2019. Uncertainties related to the U.S.-China standoff and geopolitical tensions have triggered demand for gold so far this year. Higher prices have likely had a positive impact on the company’s third-quarter earnings.

The Zacks Consensus Estimate for Yamana’s third-quarter gold production is currently pegged at 215,000 ounces, which indicates a year-over-year decline of 20.1%.

In July, the company completed the divestment of fully-owned subsidiary, Chapada mine, for more than $1 billion. The move improved financial flexibility by repayment of debt and enhanced its ability to generate net free cash flow. This is likely to have made an impact on the company in the third quarter.

Also, production increased year over year in the second quarter mainly due to higher contributions from Cerro Moro. The trend most likely continued in the third quarter.

Yamana Gold Inc. Price and EPS Surprise


Yamana Gold Inc. Price and EPS Surprise

Yamana Gold Inc. price-eps-surprise | Yamana Gold Inc. Quote


What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Yamana this time around. 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 Yamana is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 2 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Yamana currently carries a Zacks Rank #2.

Stocks Poised to Beat Estimates

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

Franco-Nevada Corporation (FNV - Free Report) has an Earnings ESP of +6.15% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Barrick Gold Corporation (GOLD - Free Report) has an Earnings ESP of +1.89% and carries a Zacks Rank #3.

Iamgold Corporation (IAG - Free Report) has an Earnings ESP of +50.00% and carries a Zacks Rank #3.

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