Markets
KRO

Barrick Gold (ABX) Q1 Earnings In Line, Sales Beat Estimates

Barrick Gold CorporationABX recorded net earnings (attributable to equity holders) of $158 million or 14 cents per share for first-quarter 2018 compared with $679 million or 58 cents a year ago.

Barring one-time items, adjusted net earnings came in at 15 cents per share for the quarter, which was in line with the Zacks Consensus Estimate.

Revenues fell roughly 10.2% year over year to $1,790 million in the first quarter. The figure however, beat the Zacks Consensus Estimate of $1,764.9 million.

Cost of sales (applicable to gold production) fell roughly 15.5% year over year to $1,046 million in the quarter.

According to the company, first-quarter results benefited from higher gold prices despite lower production levels compared to the prior-year quarter.

Barrick Gold Corporation Price, Consensus and EPS Surprise

Barrick Gold Corporation Price, Consensus and EPS Surprise | Barrick Gold Corporation Quote

Operational Highlights

Total gold production was 1.05 million ounces in the first quarter, down roughly 19.9% from 1.31 million ounces a year ago.

Average realized price of gold rose 19.2% year over year to $1,332 per ounce. All-in sustaining costs (AISC) increased 4.1% to $804 per ounce from $772 in the year-ago quarter.

Copper production decreased to 85 million pounds from 95 million pounds in the prior-year quarter. Average realized copper price was $2.98 per pound, up from $2.76 a year ago.

Financial Position

Cash and cash equivalents were $2,384 million at the end of first quarter, up roughly 4.7% year over year.

At the end of the quarter, Barrick Gold's debt was $6,344 million, down 16.9% from $7,633 million a year ago. The company plans to reduce its total debt to $5 billion by the end of 2018, using cash flows from operations and cash in hand. Also, more than three quarters of the company's $6.4 billion of outstanding debt will not mature until 2032.

Guidance

For 2018, Barrick Gold continues to anticipate gold production in the range of 4.5-5 million ounces at AISC of $765-$815 per ounce and cost of sales of $810-$850 per ounce.

The company expects gold production in the second quarter of 2018 to be more or less in line with the first quarter at around 1 million ounces. The results in the second quarter are likely to be impacted from a scheduled maintenance shutdown at the Barrick Nevada roaster.

Price Performance

Barrick Gold's shares have lost 12.7% in the last three months, underperforming the 7.7% decline recorded by its industry .

Zacks Rank & Stocks to Consider

Barrick Gold currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Steel Dynamics, Inc. STLD , United States Steel Corporation X and Kronos Worldwide Inc. KRO , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 25.8% over a year.

U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have gained 17.4% over the past six months.

Kronos has an expected long-term earnings growth rate of 5%. Its shares have rallied 41% over a year.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Barrick Gold Corporation (ABX): Free Stock Analysis Report

Steel Dynamics, Inc. (STLD): Free Stock Analysis Report

United States Steel Corporation (X): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


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

In This Story

KRO STLD X

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More