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Kinross Gold (KGC) Down 1.5% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Kinross Gold (KGC - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Kinross Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Kinross Gold's Q2 Earnings and Sales Surpass Estimates

Kinross reported a profit from continuing operations of $210.9 million or 17 cents per share in second-quarter 2024. The figure registered an increase from a profit of $151 million or 12 cents per share recorded in the year-ago quarter.

The company reported adjusted earnings of 14 cents per share compared with the prior-year quarter’s figure of 14 cents. The bottom line beat the Zacks Consensus Estimate of 13 cents.  

Revenues rose nearly 12% year over year to $1,219.5 million in the second quarter. It topped the Zacks Consensus Estimate of $1,018.1 million. 

Operational Performance

The company produced 535,338 gold equivalent ounces from continuing operations in the reported quarter, down 13.5% year over year. The figure beat our estimate of 504,994 gold equivalent ounces.

Average realized gold prices were $2,342 per ounce in the quarter, up 18.5% from the year-ago quarter’s tally. The figure beat our estimate of $2,017 per ounce.

The production cost of sales per gold equivalent ounce was $1,029, up 14% from the prior-year quarter’s levels. This was above our estimate of $1,004. AISC per gold equivalent ounce sold rose nearly 7% year over year to $1,387. This was above our estimate of $1,374.

Margin per gold equivalent ounce sold was $1,313 in the quarter, up from the prior-year quarter’s $1,076.

Financials

Cash and cash equivalents were $480 million at the end of the quarter, down around 4.7% year over year. Long-term debt was $1,234.5 million at the end of the quarter, down about 36.5% year over year.

Outlook

For 2024, Kinross expects production to be 2.1 million gold equivalent ounces (+/- 5%). The company expects a production cost of sales of $1,020 per gold equivalent ounce (+/- 5%) for the year, factoring in inflation and production mix. The company expects an AISC per gold equivalent ounce of $1,360 (+/- 5%) for 2024. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

The consensus estimate has shifted 15.14% 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. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 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

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Kinross Gold has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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