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Gold Stocks to Watch for Earnings on April 29: NEM, AEM & More

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·6 min read
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A few major gold mining companies are slated to report their quarterly numbers on Apr 29. Per the Zacks industry classification, the gold mining industry falls under the broader Basic Materials sector. Basic Materials is among the sectors that are expected to deliver profitability growth above the pre-pandemic levels in the first quarter. Overall earnings for the sector are projected to rise 64.2% on 11% higher revenues, per the latest Earnings Preview. The projections reflect an improvement from a 28.1% rise in earnings on a 1.6% increase in revenues that was witnessed in the fourth quarter.

Gold had a strong run in 2020 with prices gaining around 25% as fears over the coronavirus pandemic made it the most attractive, safe-haven asset. Apprehensions over global economic growth fueled safe-haven demand for the metal throughout the year. The ultra-low interest rate environment and geopolitical tensions also spurred demand for gold.

However, the yellow metal has lost its momentum this year as the rollout of vaccines boosted market sentiment and brightened the prospects for global economic recovery. Notably, gold prices dipped below $1,700 per ounce to the lowest level in nine months in early March 2021 on strengthening U.S. dollar and an uptrend in treasury yields. Despite the decline, gold miners are likely to have benefited from higher average realized gold prices on a year-over-year basis in the March quarter, which is likely to have supported their top lines and margins.

Meanwhile, miners have been focusing on whittling down operational costs, improving operating efficiency within existing mines, paying down debt, eliminating non-core assets and concentrating on higher ore-grade assets in an uncertain environment. Benefits of these strategic actions are likely to reflect on their first-quarter performance.

We take a look at four gold mining companies that are gearing up to report their Q1 results tomorrow.

Newmont Corporation NEM will report earnings numbers ahead of the bell. Our proven model does not conclusively predict an earnings beat for the company this quarter. 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. However, the company has an Earnings ESP of -7.91% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered an earnings surprise of 1.9%, on average.

The Zacks Consensus Estimate for first-quarter consolidated revenues for Newmont is currently pegged at $3,245 million, which calls for a rise of 25.7% year over year. The Zacks Consensus Estimate for earnings currently stands at 79 cents.

The company’s results are likely to have benefited from a higher year-over-year gold prices. However, the impact of operational restrictions in certain countries including Argentina due to the pandemic are likely to have affected its production. (Read more: Newmont to Report Q1 Earnings: What's in the Cards?)


Newmont Corporation Price and EPS Surprise

Newmont Corporation Price and EPS Surprise
Newmont Corporation Price and EPS Surprise

Newmont Corporation price-eps-surprise | Newmont Corporation Quote

Agnico Eagle Mines Limited AEM will report results after the bell. Our proven model does not conclusively predict an earnings beat for the company this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #4. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 12.1%.

The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at 57 cents.

The company is expected to have benefited from higher average realized gold prices. Its gold production is also likely to have been driven by Nunavut operations. It is likely to have witnessed continued strong production performance across the Meadowbank Complex and the Meliadine mine in the first quarter.

Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote

Eldorado Gold Corporation EGO will report results after the bell. Our proven model does not conclusively predict an earnings beat for the company this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #4.

The company beat the consensus estimate in two of the trailing four quarters while missed once and delivered in-line results on the other occasion. In this timeframe, it delivered a negative earnings surprise of 3.8%, on average.

The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at 17 cents.

The company is likely to have benefited from strong production from the Kisladag mine in Turkey on the back of higher solution processing rates. Benefits of higher average realized gold prices, operational efficiency and productivity improvements are also likely to reflect on its first-quarter performance.


Eldorado Gold Corporation Price and EPS Surprise

Eldorado Gold Corporation Price and EPS Surprise
Eldorado Gold Corporation Price and EPS Surprise

Eldorado Gold Corporation price-eps-surprise | Eldorado Gold Corporation Quote

Sandstorm Gold Ltd. SAND will report results after the bell. Our proven model predicts an earnings beat for the company this time around as it has an Earnings ESP of +4.17% and a Zacks Rank #3.

The company missed the Zacks Consensus Estimate in two of the trailing four quarters while beat once and delivered in-line results on the other occasion. In this timeframe, it delivered a negative earnings surprise of 31.3%, on average.

The Zacks Consensus Estimate for first-quarter consolidated revenues for the company is currently pegged at $30.8 million, which calls for a rise of 44.4% year over year. The Zacks Consensus Estimate for earnings currently stands at 5 cents.

Higher average realized selling prices of gold is expected to have boosted Sandstorm Gold’s top line in the quarter to be reported. The company is also likely to have gained from strong attributable gold equivalent ounces sold in the quarter.

Sandstorm Gold Ltd Price and EPS Surprise

Sandstorm Gold Ltd Price and EPS Surprise
Sandstorm Gold Ltd Price and EPS Surprise

Sandstorm Gold Ltd price-eps-surprise | Sandstorm Gold Lt

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Newmont Corporation (NEM) : Free Stock Analysis Report

Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report

Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report

Eldorado Gold Corporation (EGO) : Free Stock Analysis Report

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