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Can IAMGOLD's Keep Up Its Stock Performance after Q2 Earnings?

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Can IAMGOLD's Keep Up Its Stock Performance after Q2 Earnings? PART 1 OF 6

Can IAMGOLD’s Keep Up Its Stock Performance after Q2 Earnings?

2Q17 in-line earnings

IAMGOLD Corporation (IAG) reported its 2Q17 results after the market closed on August 9. The conference call to discuss the results with analysts took place the next day.

Can IAMGOLD&#8217;s Keep Up Its Stock Performance after Q2 Earnings?

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IAG reported 2Q17 adjusted EPS (earnings per share) of $0.01, in line with the market’s expectation. Its revenues of $275 million, on the other hand, beat consensus estimates compiled by Thomson Reuters by ~3%.

Outperformance year-to-date

While IAMGOLD’s stock price reaction after the results release was slightly negative, investors should note that its stock price has run up quite significantly year-to-date (or YTD). As of August 8, 2017, IAG’s stock price had gained 37%, significantly outperforming the VanEck Vectors Gold Miners ETF (GDX), which has gained 6.4% in the same period. No other gold miner has risen to this extent in 2017. Kinross Gold (KGC) is close, with a gain of 33%, though. In fact, many of its peers recorded negative price performance YTD. Eldorado Gold (EGO), Yamana Gold (AUY), and Goldcorp (GG) have lost 41%, 12%, and 7.7%, respectively.

Series overview

There were many positive catalysts for the stock in 2017, such as positive exploration results, the ramping-up of the Westwood mine, and improved operational performance. There are several other catalysts that the company’s management outlined during its 2Q17 earnings call that could lead to further upside for the company. In this series, we’ll discuss management’s comments on these developments. Plus, we’ll also look at the company’s financial and operational performance in 2Q17. In conclusion, we’ll also look at IAMGOLD’s valuation multiple and the catalysts that could lead to its rerating.

In the next part of this series, we’ll examine more highlights from IAMGOLD’s 2Q17 earnings.

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