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Will Fosterville Aid Kirkland Lake Gold's (KL) Q3 Earnings?

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Kirkland Lake Gold Ltd. is set to release third-quarter 2019 results on Nov 6, before the opening bell. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 6.1%.

The stock has surged 128.5% in the past year compared with the industry’s 56.6% rally.



What to Expect in Q3

In October, the company released gold production figures for third-quarter 2019.

Consolidated gold production totaled 248,400 ounces in the to-be-reported quarter, up 38% year over year and 16% sequentially. Consolidated gold sales rose 38.9% year over year to 256,276 ounces.

The company witnessed record quarterly production at Fosterville. Gold production at Fosterville surged 75% year over year to 158,327 ounces. Gold production at Macassa also rose 13% year over year to 62,945 ounces. However, production at Holt Complex fell 20.1% year over year to 27,128 ounces.

Other Factors at Play in Q3

Benefits of higher gold prices are also expected to have contributed to Kirkland Lake Gold’s 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.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter total revenues is currently pegged at $371 million, which indicates an increase of 66.4% from the year-ago quarter’s reported figure.

What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Kirkland Lake Gold 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 Kirkland Lake Gold is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 76 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Kirkland Lake Gold Ltd. Price and EPS Surprise

 

Kirkland Lake Gold Ltd. Price and EPS Surprise

Kirkland Lake Gold Ltd. price-eps-surprise | Kirkland Lake Gold Ltd. Quote

 

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 an earnings beat this quarter:

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

Kinross Gold Corporation (KGC - Free Report) has an Earnings ESP of +2.50% and flaunts a Zacks Rank #1.

Arconic Inc has an Earnings ESP of +1.42% and carries a Zacks Rank #3.

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