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The Zacks Consensus Estimate for CCJ’s earnings is pegged at 28 cents per share, which indicates a solid improvement from a loss of 1 cent per share reported in the prior-year quarter. Over the past 60 days, the estimate has moved up 21.7%. The quarter’s results are expected to reflect the year-over-year improvement in uranium prices and higher sales volumes.
Image Source: Zacks Investment Research
Over the trailing four quarters, Cameco’s earnings missed the Zacks Consensus Estimate thrice and surpassed the same in one quarter. CCJ has an average trailing four-quarter negative earnings surprise of 21.6%.
Although uranium prices had peaked at a 16-year high of $106 per pound on Jan 22, 2024, the spike was short-lived and the uranium market experienced a moderate pullback since then. Despite the cooldown, prices remained above the $80 level, buoyed by geopolitical tensions and supply concerns. In early May, U.S. President Joe Biden signed the Prohibiting Russian Uranium Imports Act, which will go into effect on Aug 11, 2024, and extend through 2040. This law will ban Russian uranium imports and earmark $2.7 billion to bolster the development of the domestic uranium-processing industry. This move also supported uranium prices.
Uranium prices averaged $89.00 per pound in April, $90.38 in May and $84.25 in June, resulting in an average of $87.88 per pound for the second quarter. This was 61% higher than the second quarter of 2023. CCJ reported an average realized price of $49.41 per pound in the second quarter of 2023.
Cameco plans to produce 18 million pounds (100% basis) at each of McArthur River/Key Lake and Cigar Lake in 2024. The company is aiming for a total of 22.4 million pounds of production (its share), higher than the 17.6 million pounds produced in 2023.
Cameco plans to sell between 32 million pounds and 34 million pounds of uranium in 2024 compared with 32 million pounds sold in 2023. Fuel services production for 2024 is expected to be 13.5-14.5 million kgU, higher than 13.3 million kgU in 2023. Sales are expected to reach 12-13 million kgU compared with 12 million kgU in 2023. This anticipated improvement in performance and sales for the full year is likely to have positively influenced the second-quarter performance.
We expect uranium production in the second quarter to have been more than 4.4 million pounds produced in the second quarter of 2023. Sales are also expected to have exceeded the 5.5 million pounds sold in the year-ago quarter as the company is likely to have capitalized on the higher prices through the quarter.
Fuel services production is expected to have been higher than 3.4 million kgU produced in the year-ago quarter. Fuel services sales are expected to have been above the 3.2 million kgU sold in the second quarter of 2023.
Higher sales volumes in both uranium and fuel services segments coupled with higher uranium prices are expected to have benefited Cameco’s performance.
Cameco has been progressing in its endeavors to lower administration, exploration and operating costs, and capital expenditure. The company has been carrying out critical automation, digitization and other projects, which are likely to have benefited its performance
In November 2023, CCJ acquired a 49% interest in Westinghouse Electric Company. Westinghouse is expected to generate a net loss of $170-$230 million in 2024 due to the impact of the purchase accounting, which requires the revaluating of Westinghouse’s inventory and other assets at the time of acquisition and the expensing of some non-operating acquisition-related transition costs. CCJ’s share of adjusted EBITDA from Westinghouse is expected to be between $445 million and $510 million in 2024.
Of the expected net loss for Westinghouse in 2024, $123 million was incurred in the first quarter. The adjusted EBITDA contribution was $77 million in the quarter. Westinghouse’s first quarter is usually the weakest. We thus expect the second-quarter contribution from Westinghouse to have been higher.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Cameco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Cameco is +17.86%.
Zacks Rank: CCJ currently carries a Zacks Rank #4 (Sell).
Price Performance
Shares of Cameco have gained 32.1% over the past year against the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for IAG’s second-quarter earnings has been revised 14.3% upward over the past 60 days and is pegged at 8 cents per share. The estimate indicates a significant turnaround from the loss of 1 cent per share reported in the second quarter of 2023. IAG has an average trailing four-quarter earnings surprise of 187.5%.
SilverCrest Metals (SILV - Free Report) will release second-quarter earnings on Aug 7 and currently has an Earnings ESP of +2.94% and a Zacks Rank of 1.
The Zacks Consensus Estimate for AEM’s SILV’s second-quarter earnings is pegged at 17 cents per share, indicating an improvement of 6% from the year-ago quarter’s actual. The estimate has moved up 6% over the past 60 days. SILV has an average trailing four-quarter earnings surprise of 42.4%.
Agnico Eagle Mines (AEM - Free Report) , scheduled to release second-quarter earnings on Jul 31, currently has an Earnings ESP of +4.63% and a Zacks Rank of 2.
The Zacks Consensus Estimate for AEM’s second-quarter earnings is pegged at 87 cents per share, indicating an improvement of 34% from the year-ago quarter’s actual. The estimate has moved up 7% over the past 60 days. AEM has an average trailing four-quarter earnings surprise of 16.5%.
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Cameco (CCJ) Gears Up to Report Q2 Earnings: What to Expect
Cameco Corporation (CCJ - Free Report) is scheduled to report second-quarter 2024 results on Jul 31, before the opening bell.
The Zacks Consensus Estimate for CCJ’s earnings is pegged at 28 cents per share, which indicates a solid improvement from a loss of 1 cent per share reported in the prior-year quarter. Over the past 60 days, the estimate has moved up 21.7%. The quarter’s results are expected to reflect the year-over-year improvement in uranium prices and higher sales volumes.
Over the trailing four quarters, Cameco’s earnings missed the Zacks Consensus Estimate thrice and surpassed the same in one quarter. CCJ has an average trailing four-quarter negative earnings surprise of 21.6%.
Cameco Corporation Price and EPS Surprise
Cameco Corporation price-eps-surprise | Cameco Corporation Quote
Factors to Note
Although uranium prices had peaked at a 16-year high of $106 per pound on Jan 22, 2024, the spike was short-lived and the uranium market experienced a moderate pullback since then. Despite the cooldown, prices remained above the $80 level, buoyed by geopolitical tensions and supply concerns. In early May, U.S. President Joe Biden signed the Prohibiting Russian Uranium Imports Act, which will go into effect on Aug 11, 2024, and extend through 2040. This law will ban Russian uranium imports and earmark $2.7 billion to bolster the development of the domestic uranium-processing industry. This move also supported uranium prices.
Uranium prices averaged $89.00 per pound in April, $90.38 in May and $84.25 in June, resulting in an average of $87.88 per pound for the second quarter. This was 61% higher than the second quarter of 2023. CCJ reported an average realized price of $49.41 per pound in the second quarter of 2023.
Cameco plans to produce 18 million pounds (100% basis) at each of McArthur River/Key Lake and Cigar Lake in 2024. The company is aiming for a total of 22.4 million pounds of production (its share), higher than the 17.6 million pounds produced in 2023.
Cameco plans to sell between 32 million pounds and 34 million pounds of uranium in 2024 compared with 32 million pounds sold in 2023. Fuel services production for 2024 is expected to be 13.5-14.5 million kgU, higher than 13.3 million kgU in 2023. Sales are expected to reach 12-13 million kgU compared with 12 million kgU in 2023. This anticipated improvement in performance and sales for the full year is likely to have positively influenced the second-quarter performance.
We expect uranium production in the second quarter to have been more than 4.4 million pounds produced in the second quarter of 2023. Sales are also expected to have exceeded the 5.5 million pounds sold in the year-ago quarter as the company is likely to have capitalized on the higher prices through the quarter.
Fuel services production is expected to have been higher than 3.4 million kgU produced in the year-ago quarter. Fuel services sales are expected to have been above the 3.2 million kgU sold in the second quarter of 2023.
Higher sales volumes in both uranium and fuel services segments coupled with higher uranium prices are expected to have benefited Cameco’s performance.
Cameco has been progressing in its endeavors to lower administration, exploration and operating costs, and capital expenditure. The company has been carrying out critical automation, digitization and other projects, which are likely to have benefited its performance
In November 2023, CCJ acquired a 49% interest in Westinghouse Electric Company. Westinghouse is expected to generate a net loss of $170-$230 million in 2024 due to the impact of the purchase accounting, which requires the revaluating of Westinghouse’s inventory and other assets at the time of acquisition and the expensing of some non-operating acquisition-related transition costs. CCJ’s share of adjusted EBITDA from Westinghouse is expected to be between $445 million and $510 million in 2024.
Of the expected net loss for Westinghouse in 2024, $123 million was incurred in the first quarter. The adjusted EBITDA contribution was $77 million in the quarter. Westinghouse’s first quarter is usually the weakest. We thus expect the second-quarter contribution from Westinghouse to have been higher.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Cameco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Cameco is +17.86%.
Zacks Rank: CCJ currently carries a Zacks Rank #4 (Sell).
Price Performance
Shares of Cameco have gained 32.1% over the past year against the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this time around:
IAMGOLD (IAG - Free Report) , set to release second-quarter 2024 earnings on Aug 8, presently has an Earnings ESP of +8.33% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IAG’s second-quarter earnings has been revised 14.3% upward over the past 60 days and is pegged at 8 cents per share. The estimate indicates a significant turnaround from the loss of 1 cent per share reported in the second quarter of 2023. IAG has an average trailing four-quarter earnings surprise of 187.5%.
SilverCrest Metals (SILV - Free Report) will release second-quarter earnings on Aug 7 and currently has an Earnings ESP of +2.94% and a Zacks Rank of 1.
The Zacks Consensus Estimate for AEM’s SILV’s second-quarter earnings is pegged at 17 cents per share, indicating an improvement of 6% from the year-ago quarter’s actual. The estimate has moved up 6% over the past 60 days. SILV has an average trailing four-quarter earnings surprise of 42.4%.
Agnico Eagle Mines (AEM - Free Report) , scheduled to release second-quarter earnings on Jul 31, currently has an Earnings ESP of +4.63% and a Zacks Rank of 2.
The Zacks Consensus Estimate for AEM’s second-quarter earnings is pegged at 87 cents per share, indicating an improvement of 34% from the year-ago quarter’s actual. The estimate has moved up 7% over the past 60 days. AEM has an average trailing four-quarter earnings surprise of 16.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.