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Kinross (KGC) to Post Q3 Earnings: What's in the Offing?

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Zacks Equity Research
·3 min read
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Kinross Gold Corporation KGC is set to release third-quarter 2020 results on Nov 4, after the closing bell.

The company has a trailing four-quarter earnings surprise of 15.5%, on average. Kinross’ third-quarter performance is likely to reflect the benefits of higher gold prices.  

The stock has surged 66.7% in the past year compared with the industry’s 41.3% rally.

Let’s see how things are shaping up for the upcoming earnings release.

Factors at Play in Q3

Kinross is gaining from strong production at three of its largest producing mines — Paracatu, Kupol and Tasiast — delivering the lowest costs. Notably, these mines delivered 63% of its total gold production in the second quarter of 2020 and was also the lowest cost mines in its portfolio. Strong production across these three mines is likely to have continued into the third quarter.

Moreover, gold has been the bright spot this year as mounting fears over the coronavirus pandemic made it the most attractive safe-haven asset. A slump in crude oil prices, a low interest rate environment and geopolitical tensions have stoked demand for gold. Concerns over supply crunch stemming from suspensions of operations by miners per government mandates also contributed to gain in gold prices. Gold prices surged past the $1,900 an ounce mark in July and even attained an all-time high of $2,089.20 an ounce on Aug 7. Meanwhile, Kinross’ averaged realize price of gold also rose 31% year over year in the second quarter. The trend is likely to have continued in the third quarter and boosted margins.  

Q3 Estimates

The Zacks Consensus Estimate for Kinross’ third-quarter gold equivalent production is currently pegged at 605,000 gold equivalent ounces, which calls for a sequential rise of 5.8%.

Kinross Gold Corporation Price and EPS Surprise

 

Kinross Gold Corporation Price and EPS Surprise
Kinross Gold Corporation Price and EPS Surprise

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

 

What the Zacks Model Says

Our proven model does not predicts an earnings beat for Kinross this time around. 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. That’s not the case here.

Earnings ESP: Earnings ESP for Kinross is -0.40%. The Zacks Consensus Estimate is currently pegged at 21 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kinross currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Likely to Beat Estimates

Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Olin Corporation OLN, scheduled to release third-quarter 2020 earnings on Nov 4, has an Earnings ESP of +16.67% and carries a Zacks Rank #3. 

Albemarle Corporation ALB, scheduled to release third-quarter 2020 earnings on Nov 4, has an Earnings ESP of +5.73% and carries a Zacks Rank #3.

Domtar Corporation UFS, slated to release third-quarter 2020 earnings on Nov 6, has an Earnings ESP of +57.14% and carries a Zacks Rank #3.

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Kinross Gold Corporation (KGC) : Free Stock Analysis Report
 
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