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Kinross (KGC) to Post Q2 Earnings: What's in the Cards?

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Kinross Gold Corporation (KGC - Free Report) is set to release second-quarter 2020 results on Jul 29, after closing bell.

The company has a trailing four-quarter earnings surprise of 38.8%, on average. Kinross’ second-quarter performance is likely to reflect the benefits of higher gold prices.  

The stock has surged 97.6% in the past year compared with the industry’s 58.8% rally.

Let’s see how things are shaping up for the upcoming earnings release.

What the Zacks Model Says

Our proven model predicts an earnings beat for Kinross this time around. 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.

Earnings ESP: Earnings ESP for Kinross is +3.70%. The Zacks Consensus Estimate is currently pegged at 14 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kinross currently carries a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here

Factors at Play

Kinross is gaining from higher production at Tasiast and Fort Knox. Tasiast attained record quarterly production and throughput rate during the first quarter of 2020 and the strong production is likely to have continued in the second quarter. Higher ounces recovered from the heap leach pad are supporting production at Fort Knox.

Further, gold has been the bright spot this year as fears over the coronavirus pandemic made it the most attractive safe-haven asset. Gold prices have gained around 13% in the second quarter — the highest quarterly percentage increase in more than four years.

Global uncertainty along with the coronavirus pandemic, renewed U.S.-China tensions and the civil unrest in the United States are contributing to the rally. As such, Kinross’ second-quarter results are expected to have received a boost from higher gold prices.

Q2 Estimates

The Zacks Consensus Estimate for Kinross’ second-quarter production is currently pegged at 585,000 gold equivalent ounces, which calls for a sequential rise of 3.2%.

Kinross Gold Corporation Price and EPS Surprise

Kinross Gold Corporation Price and EPS Surprise

Kinross Gold Corporation price-eps-surprise | Kinross Gold Corporation Quote

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:

Barrick Gold Corporation (GOLD - Free Report) , scheduled to release second-quarter 2020 earnings on Aug 10, has an Earnings ESP of +0.54% and carries a Zacks Rank #3.

FMC Corporation (FMC - Free Report) , slated to release second-quarter 2020 earnings on Aug 4, has an Earnings ESP of +1.13% and carries a Zacks Rank #3.

Pan American Silver Corp. (PAAS - Free Report) , scheduled to release second-quarter 2020 results on Aug 5, has an Earnings ESP of +23.81% and carries a Zacks Rank #3.

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