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Earnings Preview: Agnico Eagle Mines

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On Thursday, February 11, Agnico Eagle Mines (NYSE:AEM) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Agnico Eagle Mines earnings will be near $0.64 per share on sales of $952.87 million, according to analysts. Agnico Eagle Mines EPS in the same period a year ago totaled $0.37. Sales were $753.10 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 72.97% increase in the company's earnings. Sales would be up 26.53% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.67 0.21 0.19 0.37
EPS Actual 0.78 0.18 0.23 0.37
Revenue Estimate 967.18 M 536.15 M 652.33 M 785.06 M
Revenue Actual 980.61 M 557.17 M 671.88 M 753.10 M

Stock Performance

Over the last 52-week period, shares are up 23.58%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings