Energy Fuels (UUUU) to Post Q3 Earnings: What's in Store?
Energy Fuels Inc. UUUU is anticipated to report a loss when it reports third-quarter 2023 results later this week. The Zacks Consensus Estimate for earnings stands at a loss of 6 cents per share. The estimate has been unchanged over the past 30 days. The projection, however, indicates results in line with the year-ago quarter.
The consensus mark for second-quarter revenues is pegged at $3.34 million, indicating 14% growth from the prior-year quarter's actual.
Q2 Results
In the last reported quarter, Energy Fuels reported revenues of $7 million, which surpassed the Zacks Consensus Estimate of $1 million by a wide margin of 600%. The top-line figure marked a 6% improvement from the year-ago quarter.
UUUU reported an adjusted loss per share of 3 cents in the second quarter of 2023, which was narrower than the loss of 11 cents per share in the second quarter of 2022. The reported figure, however, beat the consensus estimate of a loss per share of 5 cents.
Energy Fuels has a trailing four-quarter negative earnings surprise of 70.5%, on average.
Energy Fuels Inc Price and EPS Surprise
Energy Fuels Inc price-eps-surprise | Energy Fuels Inc Quote
Factors to Note
During the first half of 2023, the company completed the sale of 380,000 pounds of uranium (U3O8) for a weighted average realized price of $60.01 per pound, resulting in a gross margin of 56%. As of Jun 30, 2023, the company held 766,000 pounds of finished uranium.
The company had stated at its second-quarter conference call that it intends to sell an additional 180,000 pounds of uranium into its current portfolio of supply agreements with U.S. nuclear utilities through 2023. The expected sales price was $54 - $58 per pound, which was expected to result in an estimated 46 - 50% gross margin.
Uranium prices had surged to a 12-year high in the third quarter of 2023 amid robust demand and tight supply. Average prices in the July to September period were $62.63 per pound, up 27% year over year.
The company is likely to have taken the opportunity to sell its inventory to take advantage of the prices. This is expected to be reflected in its third-quarter results.
Over the past several months, Energy Fuels has been working on preparing four of its conventional uranium and uranium/vanadium mines for ore production resumption. This includes significant workforce expansion and the rehabilitation and development of surface and underground infrastructure. This is expected to have resulted in higher expenses in the quarter.
The company is pursuing two new initiatives, which are its rare earth elements and TAT radioisotope initiatives, in addition to its existing uranium and vanadium products, which are expected to have led to higher costs. Nevertheless, the company’s ongoing efforts to lower costs are likely to be reflected in the third-quarter bottom line.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Energy Fuels 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 uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: UUUU has an Earnings ESP of 0.00%.
Zacks Rank: The company currently sports a Zacks Rank of 1.
Price Performance
Shares of Energy Fuels have gained 4.5% in the past year compared with the industry's 20.4% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Kinross Gold Corporation KGC, scheduled to release third-quarter earnings on Nov 8, currently has an Earnings ESP of +2.96% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kinross Gold’s earnings for the third quarter is pegged at 10 cents per share. The company has an average trailing four-quarter earnings surprise of 31.7%.
CF Industries CF, expected to release earnings on Nov 1, has an Earnings ESP of +4.79% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for CF Industries’ earnings for the third quarter is pegged at 94 cents per share. CF has an average trailing four-quarter earnings surprise of 4.8%.
Innospec IOSP, scheduled to release earnings on Nov 7, currently has an Earnings ESP of +1.73% and a Zacks Rank of 3.
The Zacks Consensus Estimate for IOSP’s earnings for the third quarter is pegged at $1.45 per share. The company has an average trailing four-quarter earnings surprise of 7.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Innospec Inc. (IOSP) : Free Stock Analysis Report
Energy Fuels Inc (UUUU) : Free Stock Analysis Report
