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Gold Mining Stocks' Q2 Earnings on Jul 26: ABX, AEM & More

A few gold mining companies are gearing up to report their quarterly numbers on Jul 26.  The second-quarter earnings season has gotten off to a strong start with a barrage of stocks coming up with positive earnings surprises. Based on the latest Earnings Preview, 97 companies on the S&P 500 index reported their quarterly numbers as of last Friday. Total earnings for these companies (representing 28.1% of the index’s total market capitalization) have increased 8.4% year over year on 5.1% higher sales.

As per the Zacks Industry classification, the gold mining industry is grouped under the broader Basic Materials sector. Overall Q2 earnings for the sector are projected to rise 1.5% while revenues are expected to increase 2.8%.

Gold racked up around 8% gains in first-half 2017, continuing the momentum of 8.5% annualized gain in 2016. While the Fed rate hike impacted the yellow metal’s run, a weaker U.S. dollar and other geopolitical concerns helped drive its safe haven demand. Moreover, China and India saw renewed physical gold demand this year, following a lackluster demand last year due to economy-specific reasons. Gold prices are likely get support from retail demand in the second half of the year, which is seasonally strong for India and China due to festival and wedding-related buying activities.

Let’s take a peek at four gold mining companies that are gearing up to report their second-quarter results on Jul 26.

Barrick Gold Corporation ABX will report its results after the bell. The company has an Earnings ESP of -5.00% as the Most Accurate estimate stands at 19 cents while the Zacks Consensus Estimate is pegged at 20 cents. The company carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Barrick beat estimates in two of the trailing four quarters while missed once and reported in line on the other occasion. In this timeframe, it came up with an average negative surprise of 2.65%.

Barrick Gold Corporation Price and EPS Surprise

 

Barrick Gold Corporation Price and EPS Surprise | Barrick Gold Corporation Quote

Agnico Eagle Mines Limited AEM will report earnings numbers after the close. The company is expected to come up with a positive earnings surprise as it carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +6.67%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Agnico Eagle beat estimates in three of the trailing four quarters while missed on the other occasion. In this timeframe, it delivered an average positive surprise of 12.24%.

Goldcorp Inc. GG will report quarterly results after the bell. The company is expected to come up with a positive earnings surprise as it carries a Zacks Rank #3 and an Earnings ESP of +10%.

Goldcorp beat estimates in two of the trailing four quarters while missed in the other two, delivering an average positive surprise of 5.56%.

Goldcorp Inc. Price and EPS Surprise

 

Goldcorp Inc. Price and EPS Surprise | Goldcorp Inc. Quote

New Gold Inc. NGD will report after the close. The company has an Earnings ESP of 0.00% as the both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents. The stock carries a Zacks Rank #4 (Sell). We caution against Sell-rated (Zacks Rank #4 or 5) stocks going into the earnings announcement.

For the trailing four quarters, New Gold’s average negative surprise was 16.67%.

New Gold Inc. Price and EPS Surprise

 

New Gold Inc. Price and EPS Surprise | New Gold Inc. Quote

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Barrick Gold Corporation (ABX): Free Stock Analysis Report
 
Goldcorp Inc. (GG): Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
 
New Gold Inc. (NGD): Free Stock Analysis Report
 
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