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Why Is B2Gold (BTG) Up 10.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for B2Gold (BTG - Free Report) . Shares have added about 10.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is B2Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
B2Gold Earnings Miss, Sales Beat Estimates in Q4
B2Gold reported adjusted EPS of 11 cents for fourth-quarter 2021, missing the Zacks Consensus Estimate of 12 cents. The bottom line was down 21%, year over year.
Including one-time items, the company reported earnings of 13 cents per share compared with the prior-year quarter’s 16 cents per share.
B2Gold generated revenues of $526 million in fourth-quarter 2021, reflecting year-over-year growth of 9.6%. This upside resulted from the 14% increase in gold ounces sold, partly offset by a 3.6% drop in the average realized gold prices on a year-over-year basis. The top-line figure surpassed the Zacks Consensus Estimate of $520 million.
During the December-end quarter, B2Gold recorded consolidated gold production of 288,849 ounces, up 13% year over year on higher gold production from the Fekola and Otjikoto mines, partly offset by lower gold production from the Masbate Mine. The Otjikoto mines achieved a record quarterly gold production in fourth-quarter 2021. The total gold production (including 16,048 ounces of attributable production from Calibre) in the quarter was 304,897 ounces, up 13% from the prior-year quarter’s levels.
The company reported the consolidated cash operating costs of $460 per ounce in the reported quarter, flat year over year. The higher-than-budgeted consolidated cash operating costs were due to higher costs for fuel, reagents and consumables and stronger local currencies. The consolidated all-in sustaining costs (AISC) of $844 per ounce were 8% lower than the prior-year quarter’s levels.
During the October-December quarter, the total cost of sales was $278 million, up 25% year over year. The gross profit declined 3.3% year over year to $248 million. The gross margin contracted to 47% in the reported quarter from the prior-year quarter’s 53%.
The operating income in the reported quarter was $237 million compared with the prior-year quarter’s $235 million. The operating margin was 45% compared with the year-ago quarter’s 49%.
Financial Position
B2Gold’s cash and cash equivalents were $673 million at the end of 2021 compared with $480 million witnessed at the end of 2020. The company generated $724 million cash from operating activities in 2021 compared with $951 million in 2020. The company’s long-term debt was $49.7 million at the end of 2021, down from $76 million at the end of 2020.
2021 Performance
B2Gold reported an adjusted EPS of 36 cents in 2021 compared with 49 cents reported in the prior year. Earnings missed the Zacks Consensus Estimate of 40 cents. Including one-time items, the bottom line came in at 40 cents per share, down 33.3% from 60 cents reported in 2020.
Sales were down 1.5% year over year to $1.76 billion. The top line was in line with the Zacks Consensus Estimate.
Outlook
B2Gold expects current-year total gold production guidance between 990,000 ounces and 1,050,000 ounces. Total consolidated cash operating costs are projected between $620 per ounce and $660 per ounce. Total consolidated All-in sustaining cost (AISC) is anticipated between $1,010 and $1,050 per ounce.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted -7.27% due to these changes.
VGM Scores
Currently, B2Gold has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
B2Gold has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is B2Gold (BTG) Up 10.8% Since Last Earnings Report?
A month has gone by since the last earnings report for B2Gold (BTG - Free Report) . Shares have added about 10.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is B2Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
B2Gold Earnings Miss, Sales Beat Estimates in Q4
B2Gold reported adjusted EPS of 11 cents for fourth-quarter 2021, missing the Zacks Consensus Estimate of 12 cents. The bottom line was down 21%, year over year.
Including one-time items, the company reported earnings of 13 cents per share compared with the prior-year quarter’s 16 cents per share.
B2Gold generated revenues of $526 million in fourth-quarter 2021, reflecting year-over-year growth of 9.6%. This upside resulted from the 14% increase in gold ounces sold, partly offset by a 3.6% drop in the average realized gold prices on a year-over-year basis. The top-line figure surpassed the Zacks Consensus Estimate of $520 million.
During the December-end quarter, B2Gold recorded consolidated gold production of 288,849 ounces, up 13% year over year on higher gold production from the Fekola and Otjikoto mines, partly offset by lower gold production from the Masbate Mine. The Otjikoto mines achieved a record quarterly gold production in fourth-quarter 2021. The total gold production (including 16,048 ounces of attributable production from Calibre) in the quarter was 304,897 ounces, up 13% from the prior-year quarter’s levels.
The company reported the consolidated cash operating costs of $460 per ounce in the reported quarter, flat year over year. The higher-than-budgeted consolidated cash operating costs were due to higher costs for fuel, reagents and consumables and stronger local currencies. The consolidated all-in sustaining costs (AISC) of $844 per ounce were 8% lower than the prior-year quarter’s levels.
During the October-December quarter, the total cost of sales was $278 million, up 25% year over year. The gross profit declined 3.3% year over year to $248 million. The gross margin contracted to 47% in the reported quarter from the prior-year quarter’s 53%.
The operating income in the reported quarter was $237 million compared with the prior-year quarter’s $235 million. The operating margin was 45% compared with the year-ago quarter’s 49%.
Financial Position
B2Gold’s cash and cash equivalents were $673 million at the end of 2021 compared with $480 million witnessed at the end of 2020. The company generated $724 million cash from operating activities in 2021 compared with $951 million in 2020. The company’s long-term debt was $49.7 million at the end of 2021, down from $76 million at the end of 2020.
2021 Performance
B2Gold reported an adjusted EPS of 36 cents in 2021 compared with 49 cents reported in the prior year. Earnings missed the Zacks Consensus Estimate of 40 cents. Including one-time items, the bottom line came in at 40 cents per share, down 33.3% from 60 cents reported in 2020.
Sales were down 1.5% year over year to $1.76 billion. The top line was in line with the Zacks Consensus Estimate.
Outlook
B2Gold expects current-year total gold production guidance between 990,000 ounces and 1,050,000 ounces. Total consolidated cash operating costs are projected between $620 per ounce and $660 per ounce. Total consolidated All-in sustaining cost (AISC) is anticipated between $1,010 and $1,050 per ounce.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted -7.27% due to these changes.
VGM Scores
Currently, B2Gold has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
B2Gold has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.