Inside Barrick Gold’s 2Q17 Earnings Beat
Barrick Gold’s 2Q17 beat
Barrick Gold (ABX) announced its 2Q17 results after the market closed on July 26, 2017. It held a conference call to go over the results with analysts the next day.
After delivering weaker results in 1Q17, Barrick surpassed analysts’ earnings expectations in 2Q17. Its 2Q17 EPS (earnings per share) of $0.22 was higher than consensus estimate of $0.18, as compiled by Thomson Reuters.
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ABX’s earnings showed an impressive growth of 65% YoY (year-over-year). The company also beat the top-line estimates, delivering revenues of nearly $2.2 billion and beating the analysts’ estimates by 5%.
ABX also made an important announcement along with its 2Q17 results. It will be pre-releasing its production and sales figures ahead of its quarterly earnings releases, starting in the third quarter of 2017.
Barrick stated that it would resume talks with the Tanzanian government over the export ban next week. For now, the company has maintained its production guidance for the year at 5.3 million–5.6 million ounces.
The 2Q17 earnings beat helped ABX stock trade in the green on July 27, 2017. Peer (GDX) Newmont Mining (NEM) released its 2Q17 results on July 25, 2017, beating market expectations. (Read Newmont Mining Digs in after a Strong 2Q17 for a detailed discussion of these results.)
Goldcorp (GG) released its 2Q17 results on July 26, 2017, beating market expectations on earnings but missing its revenue estimates. New Gold (NGD), which released its 2Q17 results on July 26, 2017, reported in-line earnings per share but beat revenues.
In this series, we’ll analyze Barrick Gold’s future prospects based on its recent 2Q17 earnings and its management’s comments. We’ll also examine the company’s production and cost performances, discuss how it has been dealing with its Tanzanian mine issues, look into its debt-reduction initiatives, and check out the latest analyst recommendations.
We’ll start by analyzing Barrick Gold’s production in 2Q17.