Agnico Eagle Mines Earnings Preview

Agnico Eagle Mines AEM will be releasing its next round of earnings this Wednesday, October 28. For all of the relevant information, here is your guide for Wednesday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Agnico Eagle Mines reporting earnings of $0.67 per share on revenue of $967.18 million. Agnico Eagle Mines earnings in the same period a year ago was $0.37 per share. Quarterly sales came in at $682.96 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 81.08%. Sales would be up 41.62% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.21 0.19 0.37 0.29
EPS Actual 0.18 0.23 0.37 0.37
Revenue Estimate 536.15 M 652.33 M 785.06 M 706.48 M
Revenue Actual 557.17 M 671.88 M 753.10 M 682.96 M

Stock Performance

For a full 12 months, the return has risen by 32.63%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Agnico Eagle Mines is scheduled to hold the call at 08:30:00 ET and can be accessed here.

Posted In: Earnings