Agnico Eagle Mines Limited AEM is slated to come up with fourth-quarter 2024 results after the closing bell on Feb. 13.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 19.2%, on average. It posted an earnings surprise of 16.3% in the last reported quarter. AEM’s performance is expected to reflect the benefits of higher gold prices and strong production.
AEM’s shares have rallied 118.7% over a year compared with the Zacks Mining – Gold industry’s 59.7% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do AEM’s Revenue Estimates Say?
The Zacks Consensus Estimate for revenues for AEM for the to-be-reported quarter stands at $2,097.2 million, reflecting a rise of around 19.4% from the year-ago quarter.
Factors to Watch For AEM Stock
The benefits of higher gold prices are expected to reflect on the company’s performance in the December quarter. Gold has been among the best-performing assets in 2024. Gold prices rallied roughly 27% last year, driven by strong demand from central banks, monetary easing in the United States, global uncertainties and a surge in safe-haven demand thanks to increased tensions in the Middle East and Russia. The strength in gold prices is expected to reflect on AEM’s profitability and cash flows in the fourth quarter. Our estimate for realized gold prices is $2,475 per ounce for the fourth quarter, suggesting a 24.9% year-over-year increase.
Continued strong gold production is likely to have supported the company’s performance. Efforts to increase mill throughput at Detour Lake and improve productivity at Macassa are likely to have aided production. AEM is also expected to have witnessed continued strong performance in its Nunavut operations. Our estimate for payable gold production is pegged at 818,809 ounces for the December quarter.
Agnico Eagle is being challenged by higher production costs. In the third quarter of 2024, its total cash costs per ounce of gold were up roughly 3% from the previous year. All-in-sustaining costs (AISC) also rose roughly 6% year over year. While AEM is taking actions to control costs, the inflationary pressure is likely to have continued in the fourth quarter. Higher sustaining capital expenditures and cash costs are expected to have contributed to increased AISC.
Agnico Eagle Mines Limited Price and EPS Surprise
Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote
What Our Model Unveils for AEM
Our proven model does not conclusively predict an earnings beat for Agnico Eagle this season. 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. But that’s not the case here.
Earnings ESP: Earnings ESP for AEM is -2.02%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.17. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AEM currently carries a Zacks Rank #3.
Basic Materials Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Avient Corporation AVNT, slated to release earnings on Feb. 13, has an Earnings ESP of +0.25% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AVNT’s earnings for the fourth quarter is currently pegged at 48 cents.
CF Industries Holdings, Inc. CF, slated to release earnings on Feb. 19, has an Earnings ESP of +1.25% and carries a Zacks Rank #3 at present.
The consensus mark for CF’s fourth-quarter earnings is currently pegged at $1.49.
Huntsman Corporation HUN, scheduled to release fourth-quarter earnings on Feb. 17, has an Earnings ESP of +7.72%.
The Zacks Consensus Estimate for Huntsman's earnings for the fourth quarter is currently pegged at a loss of 12 cents. HUN currently carries a Zacks Rank #3.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Huntsman Corporation (HUN) : Free Stock Analysis Report
Avient Corporation (AVNT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
