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Agnico Eagle (AEM) Q4 Earnings Lag, Sales Beat Estimates

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Agnico Eagle Mines Limited (AEM - Free Report) reported a net income of $101.1 million or 41 cents per share in fourth-quarter 2021, down from $205.2 million or 84 cents per share reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 46 cents. The bottom line missed the Zacks Consensus Estimate of 55 cents per share.

The company generated revenues of $949.1 million, up 2.2% year over year. The top line surpassed the Zacks Consensus Estimate of $932.9 million.

The company saw lower average realized metal prices and higher production costs in the quarter, partly offset by higher sales volumes.

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

 

Agnico Eagle Mines Limited Price, Consensus and EPS Surprise

Agnico Eagle Mines Limited price-consensus-eps-surprise-chart | Agnico Eagle Mines Limited Quote

 

Operational Highlights

Payable gold production (including the Hope Bay mine) was 501,932 ounces in the reported quarter, up from 501,445 ounces in the prior-year quarter.

Total cash costs per ounce for gold, excluding Hope Bay, were $812, up from $701 a year ago. All-in sustaining costs (AISC) were $1,126 per ounce in the quarter, excluding Hope Bay, compared with $985 per ounce in the prior-year quarter.

FY21 Results

Earnings (as reported) in full-year 2021 were $2.22 per share compared with $2.10 per share a year ago. Net sales rose 21.9% year over year to $3,823.9 million.

Financial Position

Agnico Eagle ended the year with cash and cash equivalents of $185.8 million, down 53.8% year over year. Long-term debt was around $1,340.2 million, down 14.4% year over year.

Total cash from operating activities amounted to $261.7 million in the fourth quarter, down 35.1% year over year.

Outlook

The company expects payable gold production for 2022 to be in the range of 3.2-3.4 million ounces. It also projects total cash costs per ounce of $725-$775 and AISC of $1,000-$1,050 per ounce for 2022.

The forecast for 2022 capital expenditures is pegged at roughly $1.4 billion.

Price Performance

Shares of Agnico Eagle have declined 6.9% in the past year compared with a 17.6% rise of the industry.

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Zacks Rank & Key Picks

Agnico Eagle currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .

Allegheny, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 20.9% over a year.

Nutrien, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 66.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 14.6% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 43.6% in a year.

AdvanSix has a projected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 9.8% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 29.8% over a year. The company sports a Zacks Rank #1.


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