Agnico Eagle Mines (AEM) got here out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.23 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 19.64%. 1 / 4 in the past, it was anticipated that this gold mining firm would submit earnings of $0.67 per share when it really produced earnings of $0.67, delivering no shock.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
Agnico, which belongs to the Zacks Mining – Gold trade, posted revenues of $934.39 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 5.11%. This compares to year-ago revenues of $671.88 million. The corporate has topped consensus income estimates simply as soon as during the last 4 quarters.
The sustainability of the inventory’s rapid worth motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Agnico shares have misplaced about 7.7% for the reason that starting of the 12 months versus the S&P 500’s achieve of 11.4%.
What’s Subsequent for Agnico?
Whereas Agnico has underperformed the market to date this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful observe document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Agnico was unfavorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the whole listing of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.61 on $877.85 million in revenues for the approaching quarter and $2.63 on $3.76 billion in revenues for the present fiscal 12 months.
Traders must be aware of the truth that the outlook for the trade can have a cloth influence on the efficiency of the inventory as nicely. When it comes to the Zacks Business Rank, Mining – Gold is presently within the backside 4% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Need the newest suggestions from Zacks Funding Analysis? Immediately, you may obtain 7 Greatest Shares for the Subsequent 30 Days. Click on to get this free report
Agnico Eagle Mines Restricted (AEM): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.