Yahoo Finance Barrick Gold (GOLD) Up 2.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Barrick Gold (GOLD). Shares have added about 2.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Barrick Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Barrick’s Q2 Earnings and Revenues Surpass Estimates
Barrick recorded net earnings (on a reported basis) of $370 million or 21 cents per share in second-quarter 2024, up from a profit of $305 million or 17 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 32 cents. The figure beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $3,162 million, up 11.6% year over year. The figure beat the Zacks Consensus Estimate of $3,015.7 million.
Operational Highlights
Total gold production was 948,000 ounces in the reported quarter, down around 6% year over year. The consensus estimate for the same was 1,035,000 ounces. The average realized price of gold was $2,344 per ounce in the quarter, up around 19% year over year. This compares with the consensus estimate of $2,080.
The cost of sales increased around 9% year over year to $1,441 per ounce. AISC moved up nearly 10.5% year over year to $1,498 per ounce in the quarter.
Copper production fell 10% year over year to 43,000 tons. The average realized copper price was $4.53 per pound, up 22% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,036 million, down 3% year over year. The company’s total debt was $4,724 million at the end of the quarter, down 1% year over year.
The operating cash flow was around $1.16 billion in the quarter, while free cash flow was $340 million.
Guidance
For 2024, Barrick anticipates attributable gold production to be in the range of 3.9-4.3 million ounces.
AISC is projected to be $1,320-$1,420 per ounce. Cash costs per ounce are forecast to be $940-$1,020. The company also expects the cost of sales to be $1,320-$1,420 per ounce.
Barrick expects a copper production of 180,000-210,000 tons at an AISC of $3.10-$3.40 per pound, cash costs per pound of $2-$2.30, and cost of sales of $2.65-$2.95 per pound.
Capital expenditures are projected in the range of $2,500-$2,900 million for 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 19.26% due to these changes.
VGM Scores
Currently, Barrick Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Barrick Gold belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Kinross Gold (KGC), has gained 0.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Kinross Gold reported revenues of $1.22 billion in the last reported quarter, representing a year-over-year change of +11.7%. EPS of $0.14 for the same period compares with $0.14 a year ago.
For the current quarter, Kinross Gold is expected to post earnings of $0.14 per share, indicating a change of +16.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.9% over the last 30 days.
Kinross Gold has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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