Yamana Gold (AUY) to Report Q3 Earnings: What's in Store?

Yamana Gold Inc. AUY is scheduled to report third-quarter 2020 results on Oct 29, after the closing bell.

Q2 Results

In the second quarter, the company had reported an impressive year-over-year earnings growth of 250% despite a 35% slump in revenues. The bottom-line figure of 7 cents per share beat the Zacks Consensus Estimate of 3 cents.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter earnings currently stands at 8 cents, suggesting growth of 60% from the prior-year quarter. The estimate has been revised upward by 14% over the past 30 days. The company has a trailing four-quarter earnings surprise of 81.3%, on average.

Yamana Gold Inc. Price and EPS Surprise Yamana Gold Inc. Price and EPS Surprise

Yamana Gold Inc. price-eps-surprise | Yamana Gold Inc. Quote

Factors to Note

Yamana Gold recently provided an update on its third-quarter operations, which provides an insight as to how the company is likely to have fared in the upcoming quarterly results. The company reported gold production of 201,772 ounces and silver production of 3.04 million ounces in the quarter ended Sep 30, 2020. Total gold equivalent production (“GEO”) was 240,466 ounces that came in higher on a year-over-year basis courtesy of strong operational performances at Jacobina, El Peñón, Minera Florida, and Canadian Malartic mines.

In the year-ago quarter, the company had produced 238,623 GEOs, which included 209,923 ounces of gold and 2.48 million ounces of silver. Notably, the production numbers are also tracking ahead of the company’s plans for the current year.

Gold prices have risen 26% so far this year and gained 4% in the third quarter, primarily buoyed by high level of uncertainty stemming from the COVID-19 pandemic. Silver prices have also climbed 26% in the third quarter, triggered by the recent recovery in industrial activity. The industrial metal has gained 36% year to date. Higher gold and silver prices are likely to get reflected in the Yamana Gold’s to-be-reported quarter’s results.

What Does Our Model Say?

Our proven model doesn’t conclusively predict an earnings beat for Yamana Gold 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.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Yamana Gold is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Price Performance

So far this year, shares of Yamana Gold have gained 46.9%, compared with the industry’s rally of 33.9%.

Stocks to Consider

Here are some Basic Material stocks, which you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Green Plains, Inc. GPRE has an Earnings ESP of +1.82% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. It is scheduled to release its third-quarter 2020 results on Nov 4, 2020.

First Majestic Silver Corp. AG has a Zacks Rank #3 and an Earnings ESP of +12.00%, at present. It is slated to release its third-quarter 2020 results on Nov 5, 2020.

Hudbay Minerals  Inc. HBM, currently a Zacks #3 Ranked stock, has an Earnings ESP of +2.43%. It is scheduled to release its third-quarter 2020 results on Nov 3, 2020.

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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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