Yahoo Finance Barrick (GOLD) to Report Q3 Earnings: What's in the Offing?
Barrick Gold Corporation GOLD is scheduled to report third-quarter 2022 results before the opening bell on Nov 3.
The gold mining giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 9.6%. It posted an earnings surprise of 4.4% in the last reported quarter. The company’s third-quarter results are expected to reflect lower realized gold prices and a decline in gold production.
The stock is down 18.1% in the past year compared with the industry’s 14.4% decline.
Image Source: Zacks Investment Research
What Do the Estimates Say?
Barrick, last month, announced preliminary results for the third quarter. It reported preliminary third-quarter sales of 1 million ounces of gold and 120 million pounds of copper. It also announced preliminary third-quarter production of 0.99 million ounces of gold and 123 million pounds of copper.
The average market price for gold in the third quarter was $1,729 per ounce and $3.51 per pound for copper. Barrick’s third-quarter realized copper price is projected to be 7-9% lower than the average third-quarter market price for copper.
All-in sustaining costs (AISC) per ounce for gold are projected to be 3-5% higher than second-quarter levels. Gold cost of sales per ounce is forecast to be flat sequentially. Total cash costs per ounce for gold are projected to be 3-5% higher.
The Zacks Consensus Estimate for third-quarter consolidated revenues for Barrick is currently pegged at $3,088 million, which calls for a rise of around 9.3% year over year.
Some Factors to Watch For
Lower gold production is likely have impacted the company’s performance in the quarter to be reported. Preliminary gold production in the third quarter was lower than the previous quarter’s level of 1.04 million ounces. It was also lower than 1.09 million ounces the company logged in the prior-year quarter.
Production was lower sequentially as reduced production across Veladero, Carlin and Turquoise Ridge more than offset a strong performance from Pueblo Viejo. Production was also lower sequentially at Long Canyon in the third quarter, per Barrick. However, copper production was higher sequentially driven by strong performance from Lumwana.
Meanwhile, gold prices lost the momentum since the second quarter. Gold rallied roughly 8% in the first quarter of 2022, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict. Amid the economic uncertainties, weakness in equity markets and increased volatility, gold stood out as an effective hedge.
However, gold prices erased the gains and closed the second quarter roughly 7% lower. The downdrift continued in the third quarter with prices falling around 8% in the quarter. Higher bond yields, interest rate hikes, geopolitical instability and a sharp rally in the U.S. dollar weighed on gold prices.
Lower year-over-year realized gold prices are expected to have weighed on Barrick’s performance in the September quarter. Notably, the average market price for gold for the third quarter, as reported by the company, reflects a decline from $1,771 per ounce it had recorded in the year-ago quarter. It was also down from $1,861 per ounce in the second quarter.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation price-eps-surprise | Barrick Gold Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Barrick this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Barrick is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 11 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 #5 (Strong Sell).
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:
Koppers Holdings Inc. KOP, slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
Brigham Minerals, Inc. MNRL, scheduled to release earnings on Nov 3, has an Earnings ESP of +6.34%.
The Zacks Consensus Estimate for MNRL's earnings for the third quarter is currently pegged at 67 cents. MNRL currently carries a Zacks Rank #3.
Huntsman Corporation HUN, scheduled to release earnings on Nov 4, has an Earnings ESP of +3.59%.
The consensus estimate for Huntsman’s third-quarter earnings is currently pegged at 72 cents. HUN currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
Huntsman Corporation (HUN) : Free Stock Analysis Report
Brigham Minerals, Inc. (MNRL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
