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Alamos (AGI) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research

Alamos Gold Inc. AGI is set to release third-quarter 2019 results on Oct 30, after the closing bell.

The company delivered a positive earnings surprise in the last reported quarter. Its adjusted earnings per share of 5 cents beat the Zacks Consensus Estimate of 4 cents.

The stock has gained 23.1% in the past year compared with the industry’s 62.3% surge.

Some Factors at Play in Q3

In July, the company stated that it expects gold production in the third quarter to be flat on a quarter-over-quarter basis. Notably, it reported production of 125,200 ounces of gold in the second quarter.

The company’s third-quarter performance is likely to have benefited from higher production at the Island Gold mine. The mine has been generating record quantities of gold over the trailing three reported quarters. It produced 75,100 ounces of gold through the first half of this year, driven by the benefit of the Phase 1 expansion. The trend is expected to have continued in the third quarter.

Also, higher gold prices are likely to have contributed to Alamos’ third-quarter margins. After a turbulent 2018, gold has had a stellar run in 2019. Uncertainties related to the U.S.-China standoff and geopolitical tensions have triggered demand for gold so far this year. Higher prices are expected to have made a positive impact on the company’s earnings.

What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Alamos 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 Alamos is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 6 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Alamos currently carries a Zacks Rank #2.

Alamos Gold Inc. Price and EPS Surprise


Alamos Gold Inc. Price and EPS Surprise

Alamos Gold Inc. price-eps-surprise | Alamos Gold Inc. Quote


Stocks Poised to Beat Estimates

Here are some companies in the basic materials space you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Franco-Nevada Corporation FNV has an Earnings ESP of +0.34% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross Gold Corporation GOLD has an Earnings ESP of +2.50% and flaunts a Zacks Rank #1.

LyondellBasell Industries N.V. LYB has an Earnings ESP of +1.26% and carries a Zacks Rank #3.

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