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Mining Stock Earnings Slated on Nov 5: NEM, ARNC, BTG, SSRM

Anindya Barman

A few mining companies are slated to report their quarterly numbers on Nov 5. Per the Zacks industry classification, the mining industry falls under the broader Basic Materials sector. The Q3 earnings picture for Basic Materials looks bleak. The sector is among the Zacks sectors expected to see a double-digit decline in earnings in Q3. Overall earnings for the sector are projected to fall 21% on 8.7% lower revenues, per the latest Earnings Trends.

Precious metals have regained lost ground this year after a turbulent 2018. In particular, gold has had a stellar run so far in 2019. Notably, the September quarter was eventful for the gold mining sector. Uncertainties related to the U.S.-China trade standoff and geopolitical tensions triggered demand for gold in the quarter. Moreover, the U.S. Federal Reserve cut rates twice during the quarter, providing a boost to gold prices. Prices of the yellow metal also gained from contraction in the manufacturing sector.

Gold prices broke above the $1,500 an ounce threshold in the July-September period and traded at levels last seen in 2013. Higher prices have likely had a positive impact on gold miners’ Q3 earnings.

However, copper had a tough Q3 with prices of this major industrial metal dragged down by the U.S.-China trade tussle, slowdown in China and weaker manufacturing activities. Prices of the red metal were hurt as investors fret over weak demand from China, the world’s biggest consumer, amid trade friction and a slowing global economy.

Meanwhile, miners remain committed to whittle down operational costs and capital spending, improve operating efficiency within existing mines, pay down debt, eliminate non-core assets and concentrate on their highest ore-grade assets. Some of these companies have also taken steps to bring down their all-in sustaining costs — the most important cost metric of miners. These actions are likely to have supported their margins in Q3.

Let’s peek into four mining companies that are gearing up to report their Q3 results tomorrow.

Newmont Goldcorp Corporation NEM will report earnings numbers ahead of the bell. Our proven model does not conclusively predict an earnings beat for the company this quarter. 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. However, the company has an Earnings ESP of -0.83% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Newmont Goldcorp beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. In this timeframe, the company delivered an average positive surprise of around 25.8%.

The Zacks Consensus Estimate for Newmont Goldcorp’s Q3 revenues is pegged at roughly $3,017 million, which indicates a rise of around 74.8% year over year. Moreover, the Zacks Consensus Estimate for earnings currently stands at 40 cents.

The company’s Q3 performance is likely to have benefited from higher gold prices. However, unlawful blockade of the Penasquito mine might have impacted results. (Read more: Newmont Goldcorp to Post Q3 Earnings: What's in Store?)

Arconic Inc. ARNC will report its results before the bell. Our proven model predicts an earnings beat for Arconic this time around. This is because it has an Earnings ESP of +1.42% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arconic beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, the company delivered an average positive surprise of around 10%.

The Zacks Consensus Estimate for revenues for Arconic for Q3 stands at $3,602 million, suggesting year-over-year growth of 2.2%. The Zacks Consensus Estimate for earnings is pegged at 53 cents.

The company is likely to have gained from strength across its key end-markets, especially aerospace, automotive and commercial transportation, and actions to improve its operations in Q3. (Read more: Arconic to Report Q3 Earnings: Is a Beat in Store?)

Arconic Inc. Price and EPS Surprise

 

Arconic Inc. Price and EPS Surprise
Arconic Inc. Price and EPS Surprise

Arconic Inc. price-eps-surprise | Arconic Inc. Quote

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B2Gold Corp BTG will report results after the closing bell. Our proven model does not conclusively predict an earnings beat for the company this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2.

The company beat the Zacks Consensus Estimate in one of the trailing four quarters, while missed once and delivered in-line results twice. In this timeframe, it delivered an average positive surprise of around 4.2%.

The Zacks Consensus Estimate for Q3 earnings is 8 cents per share.

Higher production and rising gold prices are expected to be reflected in B2Gold’s top line in Q3. Strong performances from Fekola, Otjikoto and Masbate mines are likely to have continued in the quarter. (Read more:  B2Gold to Report Q3 Earnings: What's in the Offing?)

B2Gold Corp Price and EPS Surprise

 

B2Gold Corp Price and EPS Surprise
B2Gold Corp Price and EPS Surprise

B2Gold Corp price-eps-surprise | B2Gold Corp Quote

 

SSR Mining Inc. SSRM will report results after the bell. Our proven model does not conclusively predict an earnings beat for the company this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #1.

The company posted better-than-expected results in each of the last four quarters. The average earnings surprise was a positive 187.5%.

The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $150.9 million, indicating an increase of 31.2% from the year-ago quarter. The Zacks Consensus Estimate for earnings is currently 14 cents.

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B2Gold Corp (BTG) : Free Stock Analysis Report
 
Newmont Mining Corporation (NEM) : Free Stock Analysis Report
 
Arconic Inc. (ARNC) : Free Stock Analysis Report
 
Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report
 
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