New Gold (NGD) Gears Up to Post Q4 Earnings: What's in Store?
New Gold NGD is scheduled to report fourth-quarter 2023 results on Feb 13, after market close.
Q4 Estimates
The Zacks Consensus Estimate for NGD’s fourth-quarter earnings is pegged at 2 cents per share, which indicates a turnaround performance from the loss of 1 cent per share reported in the year-ago comparable quarter. Over the past 30 days, the estimate has moved down 33%.
Q3 Performance
New Gold reported adjusted earnings per share of 3 cents in the third quarter of 2023 against a loss of 2 cents per share in the year-ago quarter. Earnings were in line with the Zacks Consensus Estimate. NGD has a trailing four-quarter earnings surprise of a positive 66.7%, on average.
New Gold Inc. Price and EPS Surprise
New Gold Inc. price-eps-surprise | New Gold Inc. Quote
Factors to Note
New Gold recently provided fourth-quarter 2023 production update, which indicates how the company is likely to fare in the to-be-reported quarter.
NGD reported consolidated gold equivalent production of 105,082 ounces in the fourth quarter of 2023, which marked a 7% increase year over year. The figure included 79,187 ounces of gold, 12.0 million pounds of copper and 157,788 ounces of silver. The New Afton mine delivered a strong quarter with a 53% year-over-year improvement in gold equivalent production as a result of higher tons processed, higher gold and copper grades and higher recovery rates.
The company sold 103,504 gold equivalent ounces in the quarter under review, up 9% from the year-ago quarter’s sales of 95,161 ounces. While gold sales dipped 1% to 77,870 ounces, copper sales improved 75% year over year to 11.9 million pounds.
In the fourth quarter of 2022, average realized gold prices were $1,751 per ounce and average realized copper prices were $3.74 per pound. With both prices for gold and copper trending higher than these levels in the fourth quarter of 2023, we expect this to have benefited the company’s top-line results. Also, higher copper volumes, somewhat offset by the 1% dip in gold volumes, are also likely to have reflected in the performance.
However, operating expenses are likely to have been higher on a year-over-year basis due to increased production in the quarter. Nevertheless, the expected improvement in revenues is expected to have offset this impact on the company’s fourth-quarter 2023 earnings.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for New Gold 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: The Earnings ESP for New Gold is -25%.
Zacks Rank: NGD currently carries a Zacks Rank #4 (Sell).
Price Performance
Shares of New Gold have gained 23.5% over the past year against the industry’s 5.5% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this time around:
Eldorado Gold EGO, scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.53% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Kinross Gold Corporation KGC, expected to release fourth-quarter 2023 earnings on Feb 14, presently has an Earnings ESP of +13.51% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Kinross Gold’s fourth-quarter earnings has moved up 13% in the past 30 days. The consensus estimate for KGC’s earnings for the quarter is pegged at 9 cents per share. It has an average trailing four-quarter earnings surprise of 40.9%.
Agnico Eagle Mines AEM, scheduled to release fourth-quarter 2023 earnings on Feb 15, currently has an Earnings ESP of +6.14% and a Zacks Rank of 3.
The consensus estimate for Agnico Eagle Mines’ earnings for the fourth quarter is pegged at 46 cents per share. Earnings estimates have moved 5% north in the past 30 days. It has an average trailing four-quarter earnings surprise of 9.9%.
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Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
New Gold Inc. (NGD) : Free Stock Analysis Report
Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
