Barrick Gold Corporation
GOLD
is scheduled to report
first-quarter 2022
results before the opening bell on May 4. The company’s results are expected to reflect the benefits of higher realized gold prices. However, sequentially lower gold and copper production might have affected its performance.
The gold mining giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 11%. It posted an earnings surprise of 16.7% in the last reported quarter.
The stock is up 0.3% in the past year compared with the
industry
’s 2.2% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Barrick 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:
Earnings ESP for Barrick is +0.73%. The Zacks Consensus Estimate for the first quarter is currently pegged at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank:
Barrick currently carries a Zacks Rank #3.
What Do the Estimates Say?
Barrick, last month, announced preliminary results for the first quarter. It reported preliminary first-quarter production of 1 million ounces of gold and 101 million pounds of copper. It also reported preliminary first-quarter sales of 1 million ounces of gold and 113 million pounds of copper. The average market price for gold in the first quarter was $1,877 per ounce and $4.53 per pound for copper.
All-in sustaining costs (AISC) per ounce for gold are projected to be 19.21% higher than fourth-quarter levels. Gold cost of sales per ounce is forecast to be 10-12% higher sequentially. Total cash costs per ounce for gold are projected to be 15-17% higher.
The Zacks Consensus Estimate for first-quarter consolidated revenues for Barrick is currently pegged at $2,969 million, which calls for a rise of around 0.5% year over year.
Some Factors to Watch For
The company’s first-quarter results are expected to reflect higher realized gold prices. Gold rallied roughly 8% in the first quarter, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict. Amid the ongoing economic uncertainty, weakness in both equity and bond markets and increased volatility, gold stood out as an effective hedge.
Notably, the average market price for gold for the first quarter, as reported by the company, reflects an increase from $1,793 per ounce it had recorded in the fourth quarter.
However, lower sequential gold and copper production is likely have affected the company’s performance in the quarter to be reported. The preliminary gold production in the first quarter was lower than the previous quarter’s level of 1.2 million ounces. Production was lower at Carlin and Cortez post the mechanical mill failure, Kibali and Turquoise Ridge due to planned maintenance and Tongon due to mine sequencing, per Barrick. Higher AISC and cash costs for gold are also expected to have affected its first-quarter performance.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation price-eps-surprise
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Barrick Gold Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Allegheny Technologies Incorporated
ATI
, scheduled to release earnings on May 4, has an Earnings ESP of +4.55% and carries a Zacks Rank #1. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.
Westlake Corporation
WLK
, slated to release earnings on May 3, has an Earnings ESP of +12.98% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Westlake’s first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.70.
Olympic Steel, Inc.
ZEUS
, scheduled to release earnings on May 5, has an Earnings ESP of +6.64% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Olympic Steel’s first-quarter earnings has been revised 7.1% upward in the past 60 days. The consensus estimate for ZEUS’s earnings for the quarter is currently pegged at $2.26.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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