U.S. Markets close in 1 hr 37 mins

Solid Production to Aid Kirkland Lake Gold (KL) Q2 Earnings?

Zacks Equity Research

Kirkland Lake Gold Ltd. KL is set to release second-quarter 2019 results on Jul 30, after the closing bell.

The stock has surged 105.8% in the past year compared with the industry’s 35.3% rise.

Factors at Play in Q2

The company, earlier this month, released gold production figures for the second quarter of 2019.

Consolidated gold production totaled 214,593 ounces in the to-be-reported quarter, up 30.3% year over year. Consolidated gold sales rose 29.1% year over year to 212,091 ounces.

The company witnessed record quarterly production at Fosterville. Gold production at Fosterville surged 82% year over year to 140,701 ounces.

Notably, gold production at Macassa declined 18.8% year over year to 49,196 ounces. Also, production at Holt Complex fell 7.3% year over year to 24,696 ounces. 

The Zacks Consensus Estimate for second-quarter total revenues for Kirkland Lake Gold is currently pegged at $274 million, which indicates an increase of 27.4% from the year-ago quarter’s reported figure.

What the Zacks Model Says

Our proven model does not show that Kirkland Lake Gold is likely to beat estimates in the to-be-reported quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:

Earnings ESP: Earnings ESP for Kirkland Lake Gold is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 49 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kirkland Lake Gold sports a Zacks Rank #1, which when combined with a 0.00% ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 (Sell) or #5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Kirkland Lake Gold Ltd. Price and EPS Surprise


Kirkland Lake Gold Ltd. Price and EPS Surprise

Kirkland Lake Gold Ltd. price-eps-surprise | Kirkland Lake Gold Ltd. Quote


Stocks Poised to Beat Estimates

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

Barrick Gold Corporation GOLD has an Earnings ESP of +0.70% and carries a Zacks Rank #2. 

Carpenter Technology Corporation CRS has an Earnings ESP of +0.27% and carries a Zacks Rank #3.

Covia Holdings Corporation CVIA has an Earnings ESP of +20.00% and a Zacks Rank #3.

Radical New Technology Creates $12.3 Trillion Opportunity

Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.

Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.

See the 7 breakthrough stocks now>>