It has been about a month since the last earnings report for Barrick Gold (NYSE:GOLD). Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue heading into its next earnings release, or is Barrick Gold due for a breakout? Before we dive into how investors and analysts have reacted to Barrick Gold as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on its important drivers.
Barrick’s Earnings and Sales Trail Estimates in Q2
Barrick Gold recorded net earnings (on a reported basis) of $194 million or 11 cents per share in Q2 against a net loss of $94 million or 8 cents per share in the year-ago quarter.
Excluding one-time items, adjusted EPS was 9 cents, which fell short of the Zacks Consensus Estimate of 10 cents.
Barrick recorded revenues of $2,063 million, up roughly 21% year over year. However, the figure trailed the Zacks Consensus Estimate of $2,090.8 million.
Total gold production was around 1.35 million ounces in the quarter, up 26.8% year-over-year. The results were driven by strong performances at the company’s Veladero mine in Argentina and its Loulo-Gounkoto mine in Mali. The average realized price of gold was $1,317 per ounce, compared with $1,313 per ounce in the year-ago quarter.
The cost of sales per ounce for Barrick Gold went up roughly 9% year-over-year to $964 million.
Copper production increased 17% year-over-year to 97 million pounds. The average realized copper price was $2.62 per pound, down 16% YoY.
At the end of Q2, Barrick Gold had cash and cash equivalents of $2,153 million, up around 3.3% YoY. Long-term debt was $5,504 million at the end of Q2.
Net cash provided by operating activities rose more than 300% YoY to $434 million in the quarter.
Barrick Gold stated that its annual production is expected to be at the upper end of its 2019 guidance, while its cost metrics will be at the lower end of the range.
For 2019, the company anticipates attributable gold production in the range of 5.1-5.6 million ounces and cost of sales of $910-$970 per ounce.
Barrick Gold expects copper production in the range of 375-430 million pounds and cost of sales of $2.30-$2.70 per pound.
Capital expenditure is projected between $1,400 million and $1,700 million.
How Have Estimates Been Moving Since Then?
It turns out estimates for Barrick Gold have trended upward during the past month. The consensus estimate has shifted 32.35% due to these changes.
Currently, Barrick Gold has an average Growth Score of C; however its Momentum Score is doing a bit better with a B. But Barrick Gold stock was allocated a grade of D on the value side, putting it in the bottom 40%.
Overall, Barrick Gold stock has an aggregate VGM Score of C. If you aren’t focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for Barrick Gold stock, and the magnitude of these revisions looks promising. It comes with little surprise Barrick Gold has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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