Yahoo Finance Kinross (KGC) to Report Q1 Earnings: What's in the Cards?
Kinross Gold Corporation KGC is set to release first-quarter 2023 results after the bell on May 9.
The company missed the Zacks Consensus Estimate in three of the trailing four quarters while beat once. It has a trailing four-quarter negative earnings surprise of roughly 18.9%, on average. KGC posted a negative earnings surprise of 28.6% in the last reported quarter. Benefits of improved gold prices are expected to reflect on its first-quarter results. However, weaker production is likely to have impacted performance.
The stock has gained 15.9% in the past year compared with the industry’s 15.2% rise.
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Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Kinross 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 Kinross is +1.11%. The Zacks Consensus Estimate for the first quarter is currently pegged at 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Kinross currently carries a Zacks Rank #3.
What do the Estimates Say?
The Zacks Consensus Estimate for first-quarter consolidated revenues for Kinross is currently pegged at $856.2 million, which calls for a rise of 11.5% year over year.
The Zacks Consensus Estimate for Kinross’ first-quarter gold equivalent production is currently pegged at 480,000 ounces, down 5.7% on a year-over-year basis.
Some Factors to Watch For
The company’s first-quarter results are likely to have been affected by lower gold production. Production in the March quarter is expected to have been impacted by shutdowns at Tasiast related to the 24K project and at La Coipa. Seasonal impacts of mining at Paracatu are also expected to have slowed down production in the first quarter.
Meanwhile, gold prices broke above the $1,800 per ounce level in December 2022 as signs of cooling U.S. inflation raised expectations of a less aggressive policy stance by the Federal Reserve. Prices of the yellow metal were up around 10% in the fourth quarter. The momentum continued through January 2023, with the yellow metal crossing $1,900 riding on a weaker U.S dollar.
However, gold prices lost steam in February, as strong U.S. economic data propelled yields and the U.S. dollar higher. Prices, nevertheless, rebounded strongly in March, driven by the fall in the value of the U.S. dollar after the sudden collapse of Silicon Valley Bank that led skittish investors flock to safe-haven assets. Gold gained on speculation that the banking crisis will trigger less-aggressive Federal Reserve rate hikes. Prices of the yellow metal were up nearly 8% in the first quarter.
Benefits of improved gold prices are likely to reflect on the company’s results in the to-be-reported quarter.
Kinross Gold Corporation Price and EPS Surprise
Kinross Gold Corporation price-eps-surprise | Kinross 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 too have the right combination of elements to post an earnings beat this quarter:
Air Products and Chemicals, Inc. APD, slated to release earnings on May 9, has an Earnings ESP of +2.25%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Air Products’ earnings for the fiscal second quarter is currently pegged at $2.64. APD currently carries a Zacks Rank #3.
B2Gold Corp. BTG, scheduled to release earnings on May 9, has an Earnings ESP of +9.52% and currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for B2Gold’s first-quarter earnings has been revised 40% upward in the past 60 days. The consensus estimate for BTG’s earnings for the first quarter is currently pegged at 7 cents.
Compass Minerals International, Inc. CMP, slated to release earnings on May 9, has an Earnings ESP of +16.98%.
The Zacks Consensus Estimate for Compass Minerals’ earnings for the fiscal second quarter is pegged at 53 cents. CMP currently carries a Zacks Rank #3.
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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report
B2Gold Corp (BTG) : Free Stock Analysis Report
