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Barrick Gold (GOLD) Up 3.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 3.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is Barrick 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.
Barrick’s Q1 Earnings Beat Estimates, Revenues Miss
Barrick recorded net earnings (on a reported basis) of $295 million or 17 cents per share in first-quarter 2024. The figure improved from $120 million or 7 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 16 cents.
Barrick recorded total sales of $2,747 million, up 4% year over year. The figure missed the Zacks Consensus Estimate of $2,932 million.
Operational Highlights
Total gold production was 940,000 ounces in the reported quarter, down around 1.3% year over year. Our estimate for the same was 963,000 ounces. The average realized price of gold was $2,075 per ounce in the quarter, up around 9% year over year. This compares to our estimate of $1,979.
The cost of sales increased around 3.4% year over year to $1,425 per ounce. AISC moved up around 7.6% year over year to $1,474 per ounce in the quarter.
Copper production remained flat year over year to 40,000 tons. The average realized copper price was $3.86 per pound, down 8% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $3,942 million, down 10% year over year. The company’s total debt was $4,725 million at the end of the quarter, down 1% year over year.
The operating cash flow was $760 million in the quarter, while free cash flow was $32 million.
Guidance
For 2024, Barrick anticipates attributable gold production to be in the range of 3.9-4.3 million ounces.
AISC is projected to be $1,320-$1,420 per ounce. Cash costs per ounce are forecast to be $940-$1,020. The company also expects to see a cost of sales of $1,320-$1,420 per ounce.
The company expects a copper production of 180,000-210,000 tons at an AISC of $3.10-$3.40 per pound, cash costs per pound of $2-$2.30 and cost of sales of $2.65-$2.95 per pound.
Capital expenditures are projected in the range of $2,500-$2,900 million for 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 16.91% due to these changes.
VGM Scores
At this time, Barrick Gold has an average Growth Score of C, however its Momentum Score is doing a lot 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 top 40% 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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Barrick Gold has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Barrick Gold (GOLD) Up 3.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have added about 3.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is Barrick 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.
Barrick’s Q1 Earnings Beat Estimates, Revenues Miss
Barrick recorded net earnings (on a reported basis) of $295 million or 17 cents per share in first-quarter 2024. The figure improved from $120 million or 7 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 16 cents.
Barrick recorded total sales of $2,747 million, up 4% year over year. The figure missed the Zacks Consensus Estimate of $2,932 million.
Operational Highlights
Total gold production was 940,000 ounces in the reported quarter, down around 1.3% year over year. Our estimate for the same was 963,000 ounces. The average realized price of gold was $2,075 per ounce in the quarter, up around 9% year over year. This compares to our estimate of $1,979.
The cost of sales increased around 3.4% year over year to $1,425 per ounce. AISC moved up around 7.6% year over year to $1,474 per ounce in the quarter.
Copper production remained flat year over year to 40,000 tons. The average realized copper price was $3.86 per pound, down 8% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $3,942 million, down 10% year over year. The company’s total debt was $4,725 million at the end of the quarter, down 1% year over year.
The operating cash flow was $760 million in the quarter, while free cash flow was $32 million.
Guidance
For 2024, Barrick anticipates attributable gold production to be in the range of 3.9-4.3 million ounces.
AISC is projected to be $1,320-$1,420 per ounce. Cash costs per ounce are forecast to be $940-$1,020. The company also expects to see a cost of sales of $1,320-$1,420 per ounce.
The company expects a copper production of 180,000-210,000 tons at an AISC of $3.10-$3.40 per pound, cash costs per pound of $2-$2.30 and cost of sales of $2.65-$2.95 per pound.
Capital expenditures are projected in the range of $2,500-$2,900 million for 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 16.91% due to these changes.
VGM Scores
At this time, Barrick Gold has an average Growth Score of C, however its Momentum Score is doing a lot 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 top 40% 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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Barrick Gold has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.