Why Is B2Gold (BTG) Down 11.3% Since Last Earnings Report?
A month has gone by since the last earnings report for B2Gold (BTG). Shares have lost about 11.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is B2Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
B2Gold Q1 Earnings and Sales Surpass Estimates, Up Y/Y
B2Gold reported adjusted earnings per share (EPS) of 10 cents for first-quarter 2023, beating the Zacks Consensus Estimate of 7 cents. The bottom line surged 67% year over year.
Including one-time items, the company reported 8 cents per share earnings, flat year over year.
B2Gold generated revenues of $474 million in first-quarter 2023 compared with the prior-year quarter’s $366 million. The top line surpassed the Zacks Consensus Estimate of $316 million.
In the March-end quarter, B2Gold recorded consolidated gold production of 250,719 ounces, up 27.6% year over year. The total consolidated gold production for first-quarter 2023 was 266,856 ounces (including 16,137 ounces of attributable production from Calibre Mining Corp), up 27% from the prior-year quarter.
The company reported the consolidated cash operating costs of $576 per ounce in the reported quarter, down 14.8% year over year. The consolidated all-in sustaining costs (AISC) of $1,049 per ounce were 2% higher than the prior-year quarter’s levels.
During the January-March quarter, the total cost of sales was $260 million, up 15% year over year. The gross profit improved 52.9% year over year to $214 million. The gross margin rose to 45.1% in the reported quarter from the prior-year quarter’s 38.3%. The operating income in the reported quarter was $176 million compared with the prior-year quarter’s $118 million.
Financial Position
B2Gold’s cash and cash equivalents were $674 million at the end of the first quarter 2023 compared with $649 million witnessed at the end of first quarter of 2022. The company generated $204 million cash from operating activities in the March-end quarter compared with $107 million in the year-ago quarter.
The company’s long-term debt was $35 million at the end of the first quarter compared with $42 million at the end of 2022.
Outlook
B2Gold reaffirms financial guidance for the current year. It expects 2023 total gold production guidance between 10,00,000 and 10,80,000 ounces which includes 60,000-70,000 attributable ounces from Calibre. Total consolidated cash operating costs are projected between $670 and $730 per ounce. Total consolidated AISC is anticipated between $1,195 and $1,255 per ounce.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted 10% due to these changes.
VGM Scores
At this time, B2Gold has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, B2Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
B2Gold Corp (BTG) : Free Stock Analysis Report
