Barrick Gold’s first-quarter preview
Barrick Gold (GOLD) is scheduled to announce its first-quarter earnings results on May 8 and hold its conference call on the same day. Analysts are expecting the company to report EPS of $0.09 in the quarter, a fall of 37% YoY (year-over-year).
During its earnings release for the fourth-quarter of 2018, Barrick reported adjusted EPS of $0.06, which beat the consensus estimate of $0.05. Barrick Gold missed the top line estimate by ~$60 million and reported revenue of $1.9 billion in the fourth quarter.
Barrick Gold’s underperformance YTD
YTD (year-to-date), however, the stock has fallen 7.0% compared to the VanEck Vectors Gold Miners ETF’s (GDX) fall of 4.9%. Peers Newmont Mining (NEM), Yamana Gold (AUY), IAMGOLD (IAG), and Agnico Eagle Mines (AEM) have also outperformed GOLD with YTD performances of -5.2%, 1.7%, 8.4%, and 18.8%, respectively. In the same period, the S&P 500 (SPY) and the Dow Jones Industrial Average Index (DIA) have risen 17.6% and 13.6%, respectively, outperforming GOLD.
As the initial euphoria surrounding the merger dies down, analysts and investors are now looking forward to its actual benefits and Barrick’s execution plan before they turn more positive on the stock. It’s in this context that Barrick’s upcoming first-quarter earnings release is important.
Barrick Gold prereleased production
Barrick Gold started prereleasing its production in the third quarter of 2017. The company prereleased its first-quarter production on April 18. Its production for the first quarter came in at 1.37 million ounces. It also announced that after record production at its Kibali mine in 2018, it’s set up for another record performance in 2019.