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Why Is Kinross Gold (KGC) Up 8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Kinross Gold (KGC - Free Report) . Shares have added about 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 Kinross Gold 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.
Kinross' Q3 Earnings and Revenues Outpace Estimates
Kinross reported a third-quarter 2023 profit of $109.7 million or 9 cents per share compared with $65.9 million or 5 cents per share reported in the year-ago quarter.
Adjusted earnings per share in the third quarter was 12 cents compared with 5 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 10 cents.
Revenues rose around 28.7% year over year to $1,102.4 million, surpassing the Zacks Consensus Estimate of $964 million. The upside is attributable to an increase in gold equivalent ounces sold as well as higher average realized gold prices.
Operational Performance
The company produced 585,449 gold equivalent ounces from continuing operations in the reported quarter, up 10.6% year over year. The reported figure was higher than our estimate of 556,092 gold equivalent ounces. Average realized gold prices were $1,929 per ounce in the quarter, up around 11.4% from the year-ago quarter’s figure. The reported figure was higher than our estimate of $1,846 per ounce.
The production cost of sales per gold equivalent ounce was $911, down around 3.2% from the prior year quarter. The reported figure was lower than our estimate of $995. All-in-sustaining cost per gold equivalent ounce sold rose roughly 1.1% year over year to $1,296. The reported figure was lower than our estimate of $1,330.
Margin per gold equivalent ounce sold was $1,018 in the quarter, up 28.7% from the prior quarter’s level of $791.
Financial Review
Operating cash flow from continuing operations was $406.8 million in the third quarter of 2023 compared with $173.2 million in the prior-year quarter.
Free cash flow from continuing operations was $122.9 million against an outflow of $24.1 million in the prior-year quarter.
Outlook
Kinross remains on track to meet its production guidance of 2.1 million gold equivalent ounces (+/- 5%) and all-in-sustaining cost guidance for 2023. The company is tracking the bottom end of its 2023 production cost of sales guidance and the upper end of its capital expenditure guidance.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 8.39% due to these changes.
VGM Scores
Currently, Kinross Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Kinross Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Kinross Gold is part of the Zacks Mining - Gold industry. Over the past month, Royal Gold (RGLD - Free Report) , a stock from the same industry, has gained 12.8%. The company reported its results for the quarter ended September 2023 more than a month ago.
Royal Gold reported revenues of $138.62 million in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $0.76 for the same period compares with $0.71 a year ago.
Royal Gold is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of -11%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Royal Gold. Also, the stock has a VGM Score of D.
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Why Is Kinross Gold (KGC) Up 8% Since Last Earnings Report?
It has been about a month since the last earnings report for Kinross Gold (KGC - Free Report) . Shares have added about 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 Kinross Gold 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.
Kinross' Q3 Earnings and Revenues Outpace Estimates
Kinross reported a third-quarter 2023 profit of $109.7 million or 9 cents per share compared with $65.9 million or 5 cents per share reported in the year-ago quarter.
Adjusted earnings per share in the third quarter was 12 cents compared with 5 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 10 cents.
Revenues rose around 28.7% year over year to $1,102.4 million, surpassing the Zacks Consensus Estimate of $964 million. The upside is attributable to an increase in gold equivalent ounces sold as well as higher average realized gold prices.
Operational Performance
The company produced 585,449 gold equivalent ounces from continuing operations in the reported quarter, up 10.6% year over year. The reported figure was higher than our estimate of 556,092 gold equivalent ounces. Average realized gold prices were $1,929 per ounce in the quarter, up around 11.4% from the year-ago quarter’s figure. The reported figure was higher than our estimate of $1,846 per ounce.
The production cost of sales per gold equivalent ounce was $911, down around 3.2% from the prior year quarter. The reported figure was lower than our estimate of $995. All-in-sustaining cost per gold equivalent ounce sold rose roughly 1.1% year over year to $1,296. The reported figure was lower than our estimate of $1,330.
Margin per gold equivalent ounce sold was $1,018 in the quarter, up 28.7% from the prior quarter’s level of $791.
Financial Review
Operating cash flow from continuing operations was $406.8 million in the third quarter of 2023 compared with $173.2 million in the prior-year quarter.
Free cash flow from continuing operations was $122.9 million against an outflow of $24.1 million in the prior-year quarter.
Outlook
Kinross remains on track to meet its production guidance of 2.1 million gold equivalent ounces (+/- 5%) and all-in-sustaining cost guidance for 2023. The company is tracking the bottom end of its 2023 production cost of sales guidance and the upper end of its capital expenditure guidance.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 8.39% due to these changes.
VGM Scores
Currently, Kinross Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Kinross Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Kinross Gold is part of the Zacks Mining - Gold industry. Over the past month, Royal Gold (RGLD - Free Report) , a stock from the same industry, has gained 12.8%. The company reported its results for the quarter ended September 2023 more than a month ago.
Royal Gold reported revenues of $138.62 million in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $0.76 for the same period compares with $0.71 a year ago.
Royal Gold is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of -11%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Royal Gold. Also, the stock has a VGM Score of D.