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Cameco Corp (CCJ) to Report Q3 Earnings: What's in Store?

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Cameco Corporation CCJ is scheduled to report third-quarter 2021 results on Oct 29, before the opening bell.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter bottom line is currently pegged at a loss of 3 cents per share, indicating an improvement from a loss of 15 cents reported in the prior-year quarter. The estimates have remained stable over the past 30 days.

Q2 Performance

Cameco Corp’s revenues declined 23% year over year to $292 million in the last reported quarter. The company reported a loss per share of 8 cents, wider than the Zacks Consensus Estimate of a loss of 1 cent per share. However, the reported figure improved from a loss of 11 cents reported in the year-ago quarter. The company has a trailing four-quarter negative earnings surprise 361.9%, on average.

Cameco Corporation Price and EPS Surprise

Cameco Corporation Price and EPS Surprise
Cameco Corporation Price and EPS Surprise

Cameco Corporation price-eps-surprise | Cameco Corporation Quote

Factors to Note

Unplanned production disruptions at the Cigar Lake mine and the McClean Lake mill as a precaution due to the COVID-19 pandemic had impacted the company’s performance. Even though the Cigar Lake mine restarted in mid-April, it was again temporarily suspended on Jul 1 as a precaution due to the proximity of a forest fire. However operations have resumed since. Per the company, it is on track to produce up to 12 million pounds of uranium on a 100% basis in 2021. Uranium prices have gained through the course of the third quarter, and average uranium spot prices in the third quarter were around $36.42/lb, up 31% year over year. Increased production and sales volume, and higher year-over-year realized uranium prices are likely to have contributed to the third-quarter top line. Also, fuel services revenues in the quarter to be reported are likely to reflect the company’s additional sales commitments.

The company has been progressing well with its endeavors to lower administration, exploration and operating costs, and capital expenditures. It has been undertaking a number of strategic and prudent initiatives to curtail production, which come with significant costs in the near term. The major portion of these costs are care and maintenance related to the production suspensions at the McArthur River and Key Lake operations, and at its tier-two operations. This is likely to get reflected in the company’s margins in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Cameco Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Cameco Corp is 0.00%.

Zacks Rank: Cameco Corp currently carries a Zacks Rank of 3.

Price Performance

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Shares of Cameco Corp have soared 171% over the past year, compared with the industry's growth of 23.8%.

Stocks Poised to Beat Estimates

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

MP Materials Corp. MP has an Earnings ESP of +20.37% and a Zacks Rank of 2, currently.

The Chemours Company CC has a Zacks Rank #2 and an Earnings ESP of +1.26%, at present.

Franco-Nevada Corporation FNV, a Zacks #3 Ranked stock, has an Earnings ESP of +0.38%.

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

Cameco Corporation (CCJ) : Free Stock Analysis Report

FrancoNevada Corporation (FNV) : Free Stock Analysis Report

MP Materials Corp. (MP) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

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