Yahoo Finance Kinross Gold (KGC) Up 11% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Kinross Gold (KGC). Shares have added about 11% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kinross 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 the most recent earnings report in order to get a better handle on the important catalysts.
Kinross' Earnings and Sales Surpass Estimates in Q1
Kinross reported a profit from continuing operations of $107 million or 9 cents per share in first-quarter 2024. The figure registered an increase from a profit of $90.2 million or 7 cents per share recorded in the year-ago quarter.
The company reported adjusted earnings of 10 cents per share, up from the prior-year quarter’s figure of 7 cents. The bottom line beat the Zacks Consensus Estimate of 6 cents.
Revenues rose 16% year over year to $1,081.5 million in the first quarter. It topped the Zacks Consensus Estimate of $876.9 million.
Operational Performance
The company produced 527,399 gold equivalent ounces from continuing operations in the reported quarter, up 13% year over year. The figure topped our estimate of 458,590 gold equivalent ounces.
Average realized gold prices were $2,070 per ounce in the quarter, up 9% from the year-ago quarter’s tally. The figure beat our estimate of $1,913 per ounce.
The production cost of sales per gold equivalent ounce was $982, down 0.5% from the prior-year quarter’s levels. This was below our estimate of $990. All-in-sustaining cost per gold equivalent ounce sold fell nearly 1% year over year to $1,310. This was below our estimate of $1,356.
Margin per gold equivalent ounce sold was $1,088 in the quarter, up from the prior-year quarter’s $907.
Financials
Cash and cash equivalents were $406.9 million at the end of the quarter, down around 19.6% year over year. Long-term debt was $1,234 million at the end of the quarter, down about 43% year over year.
Outlook
For 2024, Kinross expects production to be 2.1 million gold equivalent ounces (+/- 5%). The company expects a production cost of sales of $1,020 per gold equivalent ounce (+/- 5%) for the year, factoring in inflation and production mix. The company expects an all-in-sustaining cost per gold equivalent ounce of $1,360 (+/- 5%) for 2024. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 32.5% due to these changes.
VGM Scores
Currently, Kinross Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% 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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kinross Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
