Back to top

Image: Bigstock

Kinross (KGC) to Report Q3 Earnings: Is a Beat in Store?

Read MoreHide Full Article

Kinross Gold Corporation (KGC - Free Report) is set to release third-quarter 2019 results on Nov 6, after closing bell. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 66.7%.

The stock has surged 76.7% in the past year compared with the industry’s 56.6% rally.



What the Zacks Model Says

Our proven model predicts an earnings beat for Kinross 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 earning beat.

Earnings ESP: Earnings ESP for Kinross is +2.50%. The Zacks Consensus Estimate is currently pegged at 8 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kinross currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross Gold Corporation Price and EPS Surprise

 

Kinross Gold Corporation Price and EPS Surprise

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

 

Factors at Play in Q3

The company’s third-quarter performance is likely to have benefitted from higher production at Paracatu, Kupol and Tasiast. These are the company’s three largest operations, representing more than 60% of its production during the first half of 2019. Moreover, they delivered the lowest costs in Kinross’ portfolio. The trend is expected to have continued in the third quarter.  

Notably, Paracatu continues to perform impressively. So far this year, Paracatu has witnessed higher production and also maintained its lower costs. While recoveries and throughput might have remained strong in the third quarter, mining is expected to have transitioned to lower grade portions of the pit.

Tasiast is also making notable progress in becoming a large low-cost producer. The mine’s throughput continues to average above the company’s expectations as costs continue to decline.

Moreover, higher gold pricing environment is an additional upside for the company. Benefits of higher gold prices are expected to get reflected in Kinross’ third-quarter margins. Gold has had a strong run in 2019. Uncertainties related to the U.S.-China trade standoff and geopolitical tensions have triggered demand for gold so far this year. Higher prices are likely to have had a positive impact on the company’s third-quarter earnings.

Stocks Poised to Beat Estimates

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

Franco-Nevada Corporation (FNV - Free Report) has an Earnings ESP of +0.34% and sports a Zacks Rank #1.

Pan American Silver Corp. (PAAS - Free Report) has an Earnings ESP of +5.42% and carries a Zacks Rank #3.

Arconic Inc (ARNC - Free Report) has an Earnings ESP of +1.42% and carries a Zacks Rank #3.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Published in