Gold Mining Stocks Performance Analysis: Kinross Gold vs. Agnico Eagle Mines
Gold mining stocks have been a popular investment option for investors looking to capitalize on the precious metal's long-term demand. In this article, we will provide an analysis of Kinross Gold's performance, as well as a comparison to Agnico Eagle Mines.
Kinross Gold Performance Analysis
Kinross Gold came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this gold mining company would post earnings of $0.10 per share when it actually produced earnings of $0.12, delivering a surprise of 20%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Kinross Gold, which belongs to the Zacks Mining - Gold industry, posted revenues of $1.12 billion for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 23.67%. This compares to year-ago revenues of $1.08 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kinross Gold shares have lost about 18% since the beginning of the year versus the S&P 500's gain of 3.8%.
Agnico Eagle Mines Performance Analysis
Agnico Eagle Mines (AEM) is yet to report results for the quarter ended December 2023. The results are expected to be released on February 15. This gold mining company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +12.2%. The consensus EPS estimate for the quarter has been revised 4% lower over the last 30 days to the current level. Agnico Eagle Mines' revenues are expected to be $1.52 billion, up 9.8% from the year-ago quarter.
Conclusion
While Kinross Gold has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
In terms of the Zacks Industry Rank, Mining - Gold is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Agnico Eagle Mines (AEM), is yet to report results for the quarter ended December 2023. The results are expected to be released on February 15. This gold mining company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +12.2%. The consensus EPS estimate for the quarter has been revised 4% lower over the last 30 days to the current level. Agnico Eagle Mines' revenues are expected to be $1.52 billion, up 9.8% from the year-ago quarter.
