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Metal Stocks to Report Q2 Earnings on Aug 4: BTG, HL, PPP

Alcoa, Inc.AA kick-started the second-quarter earnings season with an earnings beat despite depressed aluminium prices, infusing confidence in the mining sector. This sector was racked by lower commodity prices last year. Gold and silver have been major movers this year, given the slowdown in China, volatile equity markets due to Brexit and a dovish Fed as well as the introduction of negative interest rates by several central banks (including Japan).

As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector - one of the 16 broad Zacks sectors. The 65% of the companies in this sector that have reported so far put up a 5.9% fall in earnings on the scoreboard. Considering the companies that are yet to report, the sector's earnings are expected to drop 10.6% in the quarter.

However, it is not the only sector to suffer an earnings decline this quarter. Earnings growth is projected to be in the negative territory for 9 of the 16 Zacks sectors, with Energy being the biggest laggard. Looking at the projected estimates for the quarter, total S&P 500 earnings are expected to be down 3.4% due to a 0.4% dip in revenues. It seems the quarter will end up being the fifth quarter in a row to suffer an earnings decline. (Read more: Q2 Earnings Trends Already Established ).

Let's see what's in store for these miners that are set to report quarterly numbers on Aug 4.

B2Gold Corp.BTG explores and develops mineral properties in Nicaragua, the Philippines, Namibia, Burkina Faso and Chile. The company primarily explores for gold, silver and copper. It will report second-quarter results before the market opens on Aug 4. Last quarter, the stock had delivered a positive earnings surprise of 100%.

B2GOLD CORP Price and EPS Surprise

B2GOLD CORP Price and EPS Surprise | B2GOLD CORP Quote

B2Gold recently reported record gold production and revenue for the second quarter and first half of 2016. The company is on track for another record year for gold production in 2016. We expect B2Gold to come up with a positive earnings surprise this season backed by its Zacks Rank #1 (Strong Buy) and Earnings ESP of +50.00%.

Hecla Mining Co.HL , together with its subsidiaries, discovers, acquires, develops, produces and markets precious and base metal deposits worldwide. The company offers unrefined gold and silver bullion bars to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters and brokers. It will report second-quarter results on Aug 4, before the market opens.

Last quarter, the company had delivered a positive earnings surprise of 100%. The company has an average positive earnings surprise of 31.25% over the trailing 4 quarters.

HECLA MINING Price and EPS Surprise

HECLA MINING Price and EPS Surprise | HECLA MINING Quote

The company reported a 71% and 41% surge in silver and gold production respectively in the second quarter. The company believes it is on track for another record-setting year of silver production. We expect Hecla Mining to come up with a positive earnings surprise this season backed by its Zacks Rank #1 and Earnings ESP of +50.00%.

Primero Mining Corp.PPP - a precious metals producer - engages in the acquisition, exploration, development, and operation of mineral resource properties in Canada and Mexico. It is expected to report results on Aug 4, before the market opens.

Last quarter, the company had delivered a positive earnings surprise of 44.44%. The stock has an average positive earnings surprise of 48.61% over the trailing four quarters.

PRIMERO MINING Price and EPS Surprise

PRIMERO MINING Price and EPS Surprise | PRIMERO MINING Quote

It expects to produce between 230,000 and 250,000 gold equivalent ounces at all-in sustaining costs between $975 and $1,025 per gold ounce. The stock's Earnings ESP of -60.00% and a Zacks Rank #3 (Hold) makes a beat unlikely this quarter.

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ALCOA INC (AA): Free Stock Analysis Report

HECLA MINING (HL): Free Stock Analysis Report

PRIMERO MINING (PPP): Free Stock Analysis Report

B2GOLD CORP (BTG): Free Stock Analysis Report

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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.


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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