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Mining Stocks Earnings Preview for Jul 28: AUY, ASM & More

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A host of mining companies are lined up to report their quarterly results on Jul 28. The mining industry is grouped under the broader Basic Materials sector which is among nine of the 16 Zacks sectors that are expected to see negative earnings growth in the second quarter, per the latest Earnings Trends report.

Based on the earnings scorecard as of Jul 22, earnings for the sector participants on the S&P 500 index are up 1.2% from the same period last year despite 4.8% lower revenues. The growth picture for the Basic Materials sector looks somber as the sector is expected to see an earnings decline of 13.9% on 7.7% lower sales.

Last year, mining companies saw millions being wiped out due to the slowdown in China and a crash in commodity prices. In the wake of falling demand, the only key to stay afloat was to control costs. Saddled with debt, a few companies had to divest non-core assets.

However, the mining industry seems to have staged a comeback this year on the back of recovering commodity prices. Among metals, gold and silver have been major movers this year, gaining 24% and 41% respectively, thanks to a host of factors including worries over the global economy, volatile equity markets due to Brexit, the U.S. Federal Reserve’s move to keep interest rates steady and the introduction of negative interest rates by several of the world’s central banks.

Let’s take a peek at five mining companies that are slated to report their second-quarter numbers on Jul 28.

Yamana Gold, Inc. has an Earnings ESP of -66.67% as the Most Accurate estimate stands at a penny and the Zacks Consensus Estimate is pegged at 3 cents.  Yamana holds a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult. The company posted an average positive earnings surprise of 25% in the trailing four quarters.

Yamana remains focused on operational execution as it is making efforts to create further value within its portfolio. The company is looking to boost its production profile and remains committed to debt reduction and cost improvements amid a still challenging operating backdrop. (Read more: Will Yamana Gold Disappoint Investors in Q2 Earnings?)

YAMANA GOLD INC Price and EPS Surprise

YAMANA GOLD INC Price and EPS Surprise | YAMANA GOLD INC Quote

Avino Silver & Gold Mines Ltd. (ASM - Free Report) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of a penny. The stock holds a Zacks Rank #2, but its 0.00% ESP makes surprise prediction difficult. The company missed the Zacks Consensus Estimate in three of the trailing four quarters with an average negative surprise of 102.78%.

AVINO SILVER&GD Price and EPS Surprise

AVINO SILVER&GD Price and EPS Surprise | AVINO SILVER&GD Quote

Materion Corporation (MTRN - Free Report) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 30 cents. The stock carries a favorable Zacks Rank #3 (Hold), but its 0.00% ESP makes surprise prediction difficult. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 5.66%. 

MATERION CORP Price and EPS Surprise

MATERION CORP Price and EPS Surprise | MATERION CORP Quote

Eldorado Gold Corporation (EGO - Free Report) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a breakeven. The stock holds a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Eldorado Gold beat the Zacks Consensus Estimate in two of the last four quarters.

ELDORADO GOLD Price and EPS Surprise

ELDORADO GOLD Price and EPS Surprise | ELDORADO GOLD Quote

Nevsun Resources Ltd. has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 3 cents. The stock carries a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. The company missed the Zacks Consensus Estimate in the trailing four quarters, with an average negative surprise of 70.28%.

NEVSUN RESOURCS Price and EPS Surprise

NEVSUN RESOURCS Price and EPS Surprise | NEVSUN RESOURCS Quote

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