Uranium Energy UEC is expected to report a year-over-year decline in earnings despite higher revenues in its upcoming second-quarter fiscal 2025 results.

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The Zacks Consensus Estimate for UEC’s revenues is pegged at $41.4 million, indicating a significant improvement from the year-ago quarter's actual of $0.12 million. The consensus estimate for earnings indicates break-even earnings. The estimate has remained unchanged over the past 30 days. Uranium Energy reported earnings of one cent per share in the second quarter of fiscal 2024.

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Uranium Energy’s Earnings Surprise History

UEC’s earnings missed the consensus estimate in three of the trailing four quarters while matching in one quarter. The company delivered an average surprise of negative 266.7% over the trailing four quarters.

What the Zacks Model Unveils for UEC

Our proven model does not conclusively predict an earnings beat for Uranium Energy this time around. 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, which is not the case here.

You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Uranium Energy is 0.00%.

Zacks Rank: UEC currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped UEC’s Q4 Performance

Uranium Energy is primarily engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium projects located in the United States, Canada and the Republic of Paraguay.  The company has established the existence of mineralized materials for certain uranium projects, including the Palangana Mine, Christensen Ranch Mine (collectively the ISR Mines), Roughrider and Christie Lake Project. 

UEC has, however, not yet established proven or probable reserves. Despite commencing uranium extraction at its ISR Mines, it remains in the “Exploration Stage” (as defined by the United States Securities and Exchange Commission) and will continue to remain so until proven or probable reserves have been established.

The Palangana Mine had been Uranium Energy’s sole source of revenues from the sales of produced uranium from fiscal 2012 to fiscal 2015. The company has not generated revenues from the sales of produced uranium since fiscal 2016 as it continues per its strategic plan to operate Palangana Mine and Christensen Ranch Mines at a reduced pace.  It intends to defer major pre-extraction expenditures and maintain a state of operational readiness in anticipation of a recovery in uranium prices.

At the end of first-quarter fiscal 2025 (Oct. 31, 2024), the company held 1,256,000 pounds of purchased uranium concentrate inventory. Also, as of that date, Uranium Energy committed to sell 600,000 pounds of uranium inventory for a total of $49.75 million for delivery between November 2024 and January 2025. 

Per the last available details provided by the company, during the second quarter of fiscal 2025, it entered into contracts to purchase 300,000 pounds of uranium inventory for $23.43 million (at a weighted average price of $78.08 per pound), with delivery in December 2024. It sold 500,000 pounds of uranium inventory at a weighted average price of $82.80 per pound for a total of $41.40 million. This is expected to reflect on Uranium Energy’s top-line results.  

In the second quarter of fiscal 2024, the company recorded sales and service revenues of $0.12 million from toll processing services. UEC did not sell purchased uranium inventory in the year-ago quarter. 

While the company maintains state operational readiness, uranium extraction expenditures continue to be incurred at ISR Mines, which are directly related to regulatory/mine permit compliance, lease maintenance obligations and maintenance of a necessary labor force. The company is expected to have incurred mineral property expenditures primarily consisting of costs relating to permitting, property maintenance, exploration and pre-extraction activities and other non-extraction-related activities on its mineral projects.

Uranium Energy Stock’s Price Performance

Uranium Energy’s shares have gained 7.2% in the past six months against the industry’s 1% dip.

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Recent Earnings Performances of UEC’s Peers

Energy Fuels UUUU reported a fourth-quarter fiscal 2024 loss per share of 19 cents, which missed the Zacks Consensus Estimate of breakeven earnings per share. UUUU had reported a loss of 13 cents per share in the year-ago quarter.

Energy Fuels reported revenues of around $40 million in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $45 million. The top-line figure was way higher than the year-ago quarter’s revenues of $0.5 million. 

Cameco's CCJ revenues improved 36.5% year over year to $846 million (CAD 1,183 million), which surpassed the Zacks Consensus Estimate of $753 million. CCJ reported earnings per share of 26 cents (CAD 0.36) in the quarter, which beat the consensus estimate of 23 cents.

A Stock Likely to Deliver Earnings Beat

Here is a stock with the right combination of elements to post an earnings beat in its upcoming release.

Franco-Nevada Corporation FNV presently has an Earnings ESP of +1.23% and a Zacks Rank of 3. Franco-Nevada is anticipated to deliver a decline in earnings when it reports fourth-quarter results on March 10. 

The Zacks Consensus Estimate for FNV’s quarterly earnings has moved down 3.3% in the past 60 days to 89 cents per share. The estimate indicates a 1% decline from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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