What You Need to Know For When These 5 Companies Report

Are big moves in store for these 5 mining behemoths?

| More on:
The Motley Fool

Earnings from some of the heaviest hitters in the Canadian mining space are set to be released before the market opens on Thursday.  Given the carnage that this sector has faced, tomorrow may hold some big moves from a few of these stocks.

Tabled below are where expectations for revenues and earnings currently sit for these 5 names.

Revenues

Company

Q2’13 Revs (E)

Q1’13 Revs

Q2’12 Revs

First Quantum (TSX:FM)

$933.3

$901.2

$722.3

Kinross (TSX:K)

$928.6

$1,058.1

$1,006.7

Yamana (TSX:YRI)

$486.2

$534.9

$535.7

Barrick Gold (TSX:ABX)

$3,167.5

$3,437.0

$3,278.0

Cameco (TSX:CCO)

$566.6

$444.0

$391.0

Source:  Capital IQ

EPS

Company

Q2’13 EPS (E)

Q1’13 EPS

Q2’12 EPS

First Quantum (TSX:FM)

$0.22

$0.32

$0.30

Kinross (TSX:K)

$0.06

$0.15

$0.14

Yamana (TSX:YRI)

$0.11

$0.16

$0.06

Barrick Gold (TSX:ABX)

$0.59

$0.92

$0.78

Cameco (TSX:CCO)

$0.20

$0.07

$0.09

Source:  Capital IQ

Stocks to watch

Highlighting this list, in my mind are the three gold names.  The last time Kinross and Barrick reported, they wrote off a combined $7 billion yet their stocks gained a combined $1.5 billion in market value that day.

It’s not a question if more write-offs are in store, it’s how much.  All three of the golds are vulnerable, but their stocks have been so decimated, and expectations so low, that it’s really going to have to take something spectacular to push them down materially further.

Not to be left in the dark, the market will be interested to hear what kind of progress First Quantum has made at is shiny new Cobre Panama mine, as well as the state of its other projects.  And any word out of Cameco that indicates that the Japanese market for uranium is showing positive signs would surely be welcomed by the company’s shareholders.

Foolish Takeaway

In the grand scheme of things, a single quarter rarely means all that much.  However, the market tends to react to quarterly surprises and if you know what to look for, and are prepared ahead of time, you could be provided with a great opportunity to transact.  Given the stature of all 5 of these names, you can bet that if reported results are materially different from what’s expected, you’ll hear about it.

For serious long-term gains, cutting out the quarterly noise and parking your hard earned savings in the world’s greatest businesses is a proven formula.  In our special FREE report “3 U.S. Stocks That Every Canadian Should Own” we profile 3 such businesses.  To download this report at no charge, simply click here now.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler owns shares of Barrick Gold and Yamana and is short $20 Oct 2013 puts on Cameco.  The Motley Fool doesn’t own shares in any of the companies mentioned.   

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.

More on Investing

Man making notes on graphs and charts
Dividend Stocks

TFSA Investors: Earn $500 in Tax-Free Income Each Year With Less Than $10K in Savings

TFSA investors can buy and hold quality dividend stocks such as Sun Life Financial and create a passive-income stream for…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

Dividend Diamonds: Canadian Stocks Providing Steady Passive Income

Great Canadian dividend stocks are now on sale.

Read more »

grow money, wealth build
Tech Stocks

How to Turn Your TFSA Into a Gold Mine Starting With $6,500

These two growth stocks can help super-charge your TFSA savings.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, September 26

Weakness in commodity prices could pressure the TSX index at the open today, as investors closely monitor the important U.S.…

Read more »

risk/reward
Investing

These 2 Stocks Carry a Lot of Risk, But Their Upside Is Huge

These two stocks have some significant risks, but they trade so cheaply that they offer unbelievable capital gains potential.

Read more »

Payday ringed on a calendar
Dividend Stocks

Boost Your Monthly Dividend Income With This TSX Gem

A high-yield TSX gem in the real estate sector can boost your monthly dividend income.

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Bank Stocks Look Like a Steal: Here’s My Favourite for October 2023

TD Bank (TSX:TD) stock looks dirt cheap, as it continues to fluctuate in this rocky economic environment.

Read more »

little girl in pilot costume playing and dreaming of flying over the sky
Investing

Better Buy: Air Canada Stock or WestJet Airlines?

With the airline industry yet to recover fully from the pandemic, is Air Canada one of the top stocks to…

Read more »