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Sandstorm Gold (SAND) to Post Q4 Earnings: What's in Store?

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Sandstorm Gold Ltd SAND is expected to report fourth-quarter fiscal 2020 earnings results on Feb 18, after the closing bell.

Q4 Estimates

The Zacks Consensus Estimate for Sandstorm Gold’s fiscal fourth-quarter earnings is currently pegged at 3 cents, suggesting growth of 200% from the year-ago quarter. The Zacks Consensus Estimate for revenues currently stands at $23 million, indicating an improvement of 32 % from the prior-year quarter.

A Sneak Peek at Q3

In the last reported quarter, Sandstorm Gold’s adjusted earnings per share of 3 cents came in line with the Zacks Consensus Estimate. The top line also marked a 200% improvement from earnings of 1 cent per share reported in the year-ago quarter.

In the trailing four quarters, the company has failed to meet the consensus mark in three occasions, while coming in line in one. It has a trailing four-quarter negative earnings surprise of 37.5%, on average.

Sandstorm Gold Ltd Price and EPS Surprise

Factors to Consider

Per Sandstorm Gold’s fourth-quarter operational update, the company has sold 16,100 gold equivalent ounces (GEOs). The company had sold approximately 14,150 attributable gold equivalent ounces in fourth-quarter 2018. The company also realized preliminary revenues of $24 million during the quarter under review.

In fourth-quarter 2019, gold prices averaged $1,481 per ounce — the highest average price since first-quarter 2013. Gold prices increased during the fourth quarter, courtesy of the uncertainties related to the prolonged trade war, slowdown in manufacturing activity, concerns regarding global economic growth and the Fed’s rate cuts.

Sandstorm Gold’s fourth-quarter revenues are likely to reflect impact of rising gold prices and higher units of gold sold.

Further, in the fourth quarter, preliminary cost of sales, excluding depletion was $5.0 million resulting in cash operating margins of approximately $1,180 per attributable gold equivalent ounce. This is anticipated to have driven the company’s margin in the quarter under review.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Sandstorm Gold this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Sandstorm Gold is -25.00%.

Zacks Rank: The company currently carries a Zacks Rank #2.

Price Performance

Sandstorm Gold’s shares have gained 26.8% in the past year, compared with the industry’s rally of 39.9%.

Stocks That Warrant a Look

Here are a few Basic Materials stocks which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Pan American Silver Corp. PAAS has an Earnings ESP of +5.61% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

Cleveland-Cliffs Inc. (CLF - Free Report) has a Zacks Rank #3 currently and an Earnings ESP of +29.17%.

AK Steel Holding Corporation AKS, a Zacks Ranked #3 stock, has an Earnings ESP of 11.11%.

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