Agnico Eagle Mines Limited AEM is slated to come up with fourth-quarter 2024 results after the closing bell on Feb. 13. 

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The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 19.2%, on average. It posted an earnings surprise of 16.3% in the last reported quarter. AEM’s performance is expected to reflect the benefits of higher gold prices and strong production.

AEM’s shares have rallied 118.7% over a year compared with the Zacks Mining – Gold industry’s 59.7% rise.

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Let’s see how things are shaping up for this announcement.

What do AEM’s Revenue Estimates Say?

The Zacks Consensus Estimate for revenues for AEM for the to-be-reported quarter stands at $2,097.2 million, reflecting a rise of around 19.4% from the year-ago quarter.

Factors to Watch For AEM Stock

The benefits of higher gold prices are expected to reflect on the company’s performance in the December quarter. Gold has been among the best-performing assets in 2024. Gold prices rallied roughly 27% last year, driven by strong demand from central banks, monetary easing in the United States, global uncertainties and a surge in safe-haven demand thanks to increased tensions in the Middle East and Russia. The strength in gold prices is expected to reflect on AEM’s profitability and cash flows in the fourth quarter.  Our estimate for realized gold prices is $2,475 per ounce for the fourth quarter, suggesting a 24.9% year-over-year increase.

Continued strong gold production is likely to have supported the company’s performance. Efforts to increase mill throughput at Detour Lake and improve productivity at Macassa are likely to have aided production. AEM is also expected to have witnessed continued strong performance in its Nunavut operations. Our estimate for payable gold production is pegged at 818,809 ounces for the December quarter.

Agnico Eagle is being challenged by higher production costs. In the third quarter of 2024, its total cash costs per ounce of gold were up roughly 3% from the previous year. All-in-sustaining costs (AISC) also rose roughly 6% year over year. While AEM is taking actions to control costs, the inflationary pressure is likely to have continued in the fourth quarter. Higher sustaining capital expenditures and cash costs are expected to have contributed to increased AISC.

Agnico Eagle Mines Limited Price and EPS Surprise

Agnico Eagle Mines Limited price-eps-surprise | Agnico Eagle Mines Limited Quote

What Our Model Unveils for AEM

Our proven model does not conclusively predict an earnings beat for Agnico Eagle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for AEM is -2.02%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.17. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AEM currently carries a Zacks Rank #3.

Basic Materials Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Avient Corporation AVNT, slated to release earnings on Feb. 13, has an Earnings ESP of +0.25% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for AVNT’s earnings for the fourth quarter is currently pegged at 48 cents.

CF Industries Holdings, Inc. CF, slated to release earnings on Feb. 19, has an Earnings ESP of +1.25% and carries a Zacks Rank #3 at present.

The consensus mark for CF’s fourth-quarter earnings is currently pegged at $1.49.

Huntsman Corporation HUN, scheduled to release fourth-quarter earnings on Feb. 17, has an Earnings ESP of +7.72%.

The Zacks Consensus Estimate for Huntsman's earnings for the fourth quarter is currently pegged at a loss of 12 cents. HUN currently carries a Zacks Rank #3.

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