Yahoo Finance Agnico Eagle (AEM) to Report Q1 Earnings: What's in the Cards?
Agnico Eagle Mines Limited AEM is scheduled to report first-quarter 2023 results after the closing bell on Apr 27.
The company's earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 31.8%, on average. It posted an earnings surprise of 5.1% in the last reported quarter. The company’s first-quarter results are expected to reflect the benefits of higher gold production and gold prices.
The stock is down 2.1% in the past year compared with the industry’s 1.5% decline.
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Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Agnico Eagle 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 Agnico Eagle is +6.01%. The Zacks Consensus Estimate for the first quarter is currently pegged at 47 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Agnico Eagle currently carries a Zacks Rank #3.
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter consolidated revenues for Agnico Eagle is currently pegged at $1,300 million, which calls for a decline of around 1.9% year over year.
The Zacks Consensus Estimate for payable gold production stands at 774,356 ounces for the first quarter, implying roughly 17.2% year over year increase.
Some Factors to Watch For
Higher gold production is likely to have supported the company’s performance in the quarter to be reported. Production is likely to have been driven by the inclusion of the production from the Detour Lake, Fosterville and Macassa mines.
The company is also expected to have witnessed continued strong performance in its Nunavut operation. Strong operating performance is likely to have aided production at Amaruq. Strong production performance is also expected to have continued at Detour Lake while Macassa is likely to have gained from productivity improvements in the March quarter. This is likely to have been offset by continued weaker production at Pinos Altos and Kittila mines.
Meanwhile, gold prices broke above the $1,800 per ounce level in December 2022 as signs of cooling U.S. inflation raised expectations of a less aggressive policy stance by the Federal Reserve. Prices of the yellow metal were up around 10% in the fourth quarter. The momentum continued through January 2023, with the yellow metal crossing $1,900 riding on a weaker U.S dollar.
However, gold prices lost steam in February, as strong U.S. economic data propelled yields and the U.S. dollar higher. Prices, nevertheless, rebounded strongly in March, driven by the fall in the value of the U.S. dollar after the sudden collapse of Silicon Valley Bank that led skittish investors flock to safe-haven assets. Gold gained on speculation that the banking crisis will trigger less-aggressive Federal Reserve rate hikes. Prices of the yellow metal were up nearly 8% in the first quarter.
The benefits of higher gold prices are expected to reflect on the company’s performance in the March quarter.
Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
FMC Corporation FMC, slated to release earnings on May 1, has an Earnings ESP of +0.86% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for FMC’s first-quarter earnings has been stable in the past 60 days. The Zacks Consensus Estimate for FMC’s earnings for the quarter is pegged at $1.74.
Axalta Coating Systems Ltd. AXTA, slated to release earnings on May 2, has an Earnings ESP of +4.35%.
The consensus estimate for Axalta Coating Systems’ earnings for the first quarter is currently pegged at 31 cents. AXTA currently carries a Zacks Rank #3.
Ternium S.A. TX, scheduled to release earnings on Apr 25, has an Earnings ESP of +10.85% and currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for TX’s first-quarter earnings has been revised 5.4% upward in the past 60 days. The consensus estimate for TX’s earnings for the first quarter is currently pegged at 98 cents.
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Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
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Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
