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Barrick (GOLD) to Post Q1 Earnings: What's in the Cards?

Zacks Equity Research

Barrick Gold Corporation GOLD is set to release first-quarter 2019 results on May 8, before the opening bell.

The stock has lost 5.7% in the past year compared with the industry’s 7% decline.

Some Factors at Play

In April 2019, the company released preliminary production figures for the first quarter that came in line with its operating plans and guidance.

Preliminary gold production and sales were 1.37 million ounces for the to-be-reported quarter. Average market price for gold during the quarter was $1,304 per ounce. Preliminary copper production and sales totaled 106 million pounds and 103 million pounds, respectively. Average market price for copper was $2.82 per pound.

Gold production and sales from the Cortez mine were 262,000 ounces and 259,000 ounces, respectively. The same for Goldstrike were 233,000 and 239,000, respectively. Turquoise Ridge produced 77,000 gold equivalent ounces. Barrick Nevada and Pueblo Viejo produced 572,000 gold equivalent ounces and 148,000 gold equivalent ounces, respectively.   

Barrick also noted that the Kibali gold mine in the Democratic Republic of Congo had a strong start in 2019 and is on track for another solid performance this year. Production from the mine was 93,000 ounces in the first quarter.

Notably, the Zacks Consensus Estimate for total revenues for the first quarter is currently pegged at $2,160 million, indicating an expected increase of 20.7% from the year-ago reported figure.

What the Zacks Model Says

Our proven model shows that Barrick is likely to beat estimates in the to-be-reported quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is the case here, as you will see below:

Earnings ESP: Earnings ESP for Barrick is +4.48%. The Zacks Consensus Estimate is currently pegged at 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Barrick currently carries a Zacks Rank #3, which when combined with a positive ESP makes us reasonably confident of an earnings beat.  

Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Barrick Gold Corporation Price and EPS Surprise

Barrick Gold Corporation Price and EPS Surprise | Barrick Gold Corporation Quote

Other Stocks Poised to Beat Estimates

Here are some other companies in the same space you may want to consider as our model shows that they have the right combination of elements to beat estimates.

Intrepid Potash, Inc IPI has an Earnings ESP of +25.00% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bunge Limited BG has an Earnings ESP of +5.00% and carries a Zacks Rank #3.

Covia Holdings Corporation CVIA has an Earnings ESP of +17.34% and Zacks Rank #3.

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