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Agnico Eagle (AEM) to Post Q2 Earnings: Is a Beat in Store?

Agnico Eagle Mines Limited AEM is scheduled to report second-quarter 2020 results on Jul 29, after the closing bell.

The benefits of higher gold prices are likely to get reflected in Agnico Eagle’s second-quarter performance.  

The stock has gained 32.1% in the past year compared with the industry’s 58.9% surge.

Let’s see how things are shaping up for the upcoming announcement.

What the Zacks Model Says

Our proven model predicts an earnings beat for Agnico Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat. 

Earnings ESP: Agnico Eagle has an Earnings ESP of +4.17%. The Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at 18 cents and 17 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Agnico Eagle currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

Agnico Eagle’s first-quarter production was hurt by the coronavirus pandemics and related shutdowns. Factors like lower mining operations at Meliadine and Amaruq affected production along with temporary suspension of mining operations in Quebec.  

In April 2020, the company restarted its Quebec operations including the Canadian Malartic, which is the largest operating open-pit gold mine in Canada. Agnico Eagle is ramping up mining activities at Canadian Malartic. Ramp up of activities at Quebec operations as well as Nunavut is likely to have provided some support to production in the June quarter.

Further, gold has been the bright spot this year as fears over the coronavirus pandemic made it the most attractive safe-haven asset. Gold prices gained around 13% in the second quarter — the highest quarterly percentage increase in more than four years.

Global uncertainty along with the coronavirus pandemic, renewed U.S.-China trade tensions and the civil unrest in the United States are contributing to the rally. As such, Agnico Eagle’s second-quarter results are expected to reflect the benefits from higher gold prices.

Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote

Other Stocks Likely to Beat Estimates

Here are some other companies that you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:

Barrick Gold Corporation GOLD, scheduled to release second-quarter 2020 earnings on Aug 10, has an Earnings ESP of +0.54% and carries a Zacks Rank #3.

FMC Corporation FMC, slated to release second-quarter 2020 earnings on Aug 4, has an Earnings ESP of +1.13% and a Zacks Rank #3.

Pan American Silver Corp. PAAS, scheduled to release second-quarter 2020 results on Aug 5, has an Earnings ESP of +23.81% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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