NexGen Energy NXE is anticipated to report a loss in its third-quarter 2024 results next week.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for NXE’s bottom line is pegged at a loss of 3 cents per share, which indicates an improvement from the loss of 4 cents incurred in the third quarter of 2023. The estimate has been unchanged in the past 60 days.
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NXE’s Earnings Surprise History
NexGen Energy’s earnings missed the Zacks Consensus Estimates in three of the trailing four quarters and surpassed the same in one, the average surprise being a negative 191.67%.
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What the Zacks Model Unveils for NexGen Energy
Our proven model does not conclusively predict an earnings beat for NexGen Energy 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 is not the case here.
Earnings ESP: NXE has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped NXE’s Q3 Performance
NexGen Energy is currently focusing on developing its fully owned Rook I Project located in the southwestern Athabasca Basin of Saskatchewan, Canada. Per the company, it has the capability to become the world’s largest supplier of uranium.
The company, on Aug. 8, provided an update on the initial capital, sustaining and operating cost estimates for the project.
The estimated pre-production capital costs are now projected at C$2.2 billion ($1.58 billion). Average cash operating costs over the life of the mine are anticipated at C$13.86 per pound ($9.98 per pound) of uranium. Updated sustaining capital costs are estimated at $785 million (averaging $70 million per year over the life of mine). This includes closure costs of approximately $70 million. NXE estimates production of up to 30 million pounds of uranium annually over the life of the mine.
With the project currently in the exploration and development stage, the company does not generate any revenues and has been reporting recurring operating losses.
NXE’s results in the third quarter are likely to reflect the impact of salaries, benefits and directors’ fees. Office, administrative and travel costs are expected to have been higher year over year due to additional travel and an overall increase in costs consistent with the expansion of operations. These factors, in the absence of revenues, are likely to have led to a third-quarter loss for NexGen Energy.
NexGen Energy’s Share Price Performance
NXE’s shares have gained 30% in the past year compared with the industry's 2.1% growth.
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Stocks to Consider
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 quarter:
Agnico Eagle Mines Limited AEM, scheduled to release its third-quarter 2024 earnings on Oct. 30, has an Earnings ESP of +5.82% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s earnings is pegged at 96 cents per share. It has a trailing four-quarter average earnings surprise of 13.7%.
Kinross Gold Corporation KGC, scheduled to release its third-quarter 2024 results on Nov. 5, currently has an Earnings ESP of +12.29% and a Zacks Rank of 1.
The consensus estimate for KGC’s third-quarter 2024 earnings is pegged at 16 cents per share, indicating year-over-year growth of 33.3%. It has a trailing four-quarter average earnings surprise of 29.1%.
Royal Gold, Inc. RGLD, set to release third-quarter earnings on Nov. 6, has an Earnings ESP of +1.13% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for RGLD’s earnings is pegged at $1.25 per share. It has a trailing four-quarter average earnings surprise of 6.4%.
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