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Barrick (GOLD) to Post Q1 Earnings: What's in the Offing?

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Barrick Gold Corporation (GOLD - Free Report) is set to release first-quarter 2020 results on May 6, before the opening bell.

The company has a trailing four-quarter positive earnings surprise of 17.9%, on average. Barrick’s first-quarter results are likely to reflect the benefits of higher gold prices.  

The stock has rallied 105.6% in the past year compared with the industry’s 89.1% growth.



Let’s see how things are shaping up for this announcement.

What to Expect in Q1

In April, the company issued preliminary results for first-quarter 2020.

In the first quarter, gold production and sales were 1.25 million ounces and 1.22 million ounces, respectively. Copper production and sales amounted to 115 million pounds and 110 million pounds, respectively. Average market price for gold was $1,583 per ounce and the same for copper was $2.56 per pound.

Realized copper price for the first quarter is expected to be 12-14%, which is lower than the average market price. The downside is due to provisional pricing adjustments. Further, the company expects gold costs to be flat compared with fourth-quarter 2019 levels.  

Factors at Play

Gold has been the bright spot in the first quarter as worries over the coronavirus pandemic made it the most attractive safe-haven asset. Also, slump in crude oil prices, a low interest rate environment and geopolitical tensions have boosted demand for gold. Concerns over supply crunch stemming from suspensions of operations by miners per government mandates also contributed to gain in gold prices this year.

In early March, gold prices surged past the $1,700 an ounce level for the first time in seven years, courtesy of the pandemic and a sharp decline in oil prices triggered by Saudi Arabia's price war with Russia. As such, Barrick’s first-quarter results are expected to reflect the benefits from higher gold prices.

Q1 Estimates

The Zacks Consensus Estimate for Barrick’s first-quarter consolidated revenues is currently pegged at $2,745 million, which calls for a rise of 31.2% year over year.

Barrick Gold Corporation Price and EPS Surprise

 

Barrick Gold Corporation Price and EPS Surprise

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

 

What the Zacks Model Says

Our proven model doesn’t predict an earnings beat for Barrick 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 Barrick is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 16 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.

Stocks Likely to Beat Estimates

Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this time around.

The Scotts Miracle-Gro Company (SMG - Free Report) , scheduled to release second-quarter fiscal 2020 earnings on May 6, has an Earnings ESP of +1.49% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wheaton Precious Metals Corp. (WPM - Free Report) , scheduled to release first-quarter 2020 results on May 6, has an Earnings ESP of +2.58% and carries a Zacks Rank #2.

Domtar Corporation (UFS - Free Report) , slated to release first-quarter 2020 results on May 8, has an Earnings ESP of +39.81% and carries a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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