Cameco Q1 Earnings On Deck

A weak first quarter is expected, but better days are ahead.

Iain Butler

Chief Investment Advisor, Motley Fool Canada Fool since November 2012 Iain Butler, CFA, is Lead Advisor on Discovery Canada 2017. He is also the Chief Investment Advisor for Motley Fool Canada and is the lead advisor on its flagship Stock Advisor Canada product. Before joining the Fool, Iain was a “buy-side” analyst and through this experience is well-versed in the idiosyncratic ways of the Canadian market. His investing interests are centred on scouring the market for interesting businesses that trade at reasonable prices and offer an appealing risk/reward relationship. Since joining the Fool in 2012, Iain dedicates each day to spreading Foolishness throughout this great country!

Published April 30, 2013 2:07 pm EDT

Cameco (TSX:CCO,NYSE:CCJ) is scheduled to report earnings Wednesday morning at 9:00am. Tabled below are estimates of what to expect:

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Q1’13	$0.09	$0.33	$456	$563
2013	$1.17	$0.67	$2,683	$2,321

Source: Capital IQ

Clearly, the quarter is expected to be weak relative to the first quarter of last year. Both EPS and revenues are expected to come up short of last year’s mark. However, analysts remain optimistic that 2013 will be an overall better year for the company.

Cameco has guided for a very weak quarter due to lower uranium sales volumes and lower electricity generation from Bruce Power due to scheduled outages. 3 of 4 units at the Bruce were down in Q1.

Though this quarter is expected to be weak, 60% of uranium sales are expected to occur in the second half of the year. The market is likely to seek some assurance that all is on track. In addition, further updates on the much maligned Cigar Lake mine are anticipated. Cigar Lake is expected to finally enter production mid-2013.

The short-term outlook for Cameco is somewhat murky. Longer term however, the prognosis couldn’t be better. Uranium has the potential to be the fuel that powers the 21st century and currently the market is completely ignoring it. Click here now for instant access to our FREE report titled “Fuel Your Portfolio With This Energetic Commodity”. We think you’ll be surprised just how bright the future is for uranium, just how far these two Canadian names have fallen, AND how fast they could rebound. Click here to access this free report, and hop on for the nuclear ride of your life.

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Fool contributor Iain Butler does not own shares in any of the companies mentioned in this report at this time. The Motley Fool has no positions in the stocks mentioned above.