Cameco Q1 Earnings On Deck

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

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The Motley Fool

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

 

Exp. EPS

vs. 2012

Exp. Revs

vs. 2012

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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