Cameco Corporation CCJ is scheduled to report fourth-quarter 2023 results on Feb 8, before the opening bell.

Q4 Estimates

The Zacks Consensus Estimate for CCJ’s fourth-quarter earnings is pegged at 21 cents per share, which indicates a solid 200% improvement from the earnings of 7 cents per share reported in the prior-year quarter. Over the past 30 days, the estimate has moved down 5%.

Cameco Corporation Price and EPS Surprise

Cameco Corporation price-eps-surprise | Cameco Corporation Quote

Q3 Performance

Cameco reported adjusted earnings per share of 24 cents in the third quarter of 2023 compared with 2 cents in the prior-year quarter. The company surpassed the Zacks Consensus Estimate of earnings of 11 cents. CCJ has a trailing four-quarter earnings surprise of a negative 2.6%, on average.

Factors to Note

In the fourth quarter of 2023, Cameco is likely to have benefited from higher sales volumes and average realized prices in both uranium and fuel services segments. Uranium prices reached the highest levels since 2007 amid robust demand and tight supply. Also, higher fuel services sales are likely to have boosted the company’s performance.

To reflect the improving market fundamentals, the company earlier raised its 2023 consolidated revenue outlook to $2.43-$2.58 billion, up from the previously stated $2.38-$2.53 billion.

Cameco has been progressing in its endeavors to lower administration, exploration and operating costs, and capital expenditure. The company has been carrying out critical automation, digitization and other projects, which are likely to have benefited its performance.

In September, the company announced its 2023 expectation for the Cigar Lake mine to produce up to 16.3 million pounds of uranium concentrate on a 100% basis.  Cameco previously estimated the mine to generate 18 million pounds of uranium.

The McArthur River/Key Lake operations were expected to produce 14 million pounds of uranium (100% basis) in 2023, down from the earlier stated 15 million pounds.

Reflecting these setbacks, Cameco lowered its 2023 uranium production guidance to 18.7 million pounds (the company’s share) for 2023. However, the company expected uranium sales/ delivery volumes of 31-33 million pounds, taking into account uranium purchases of 11-13 million pounds.

The company’s uranium production in 2022 was 10.4 million pounds and sale volumes were 25.6 million pounds. Despite the lowered guidance for 2023, the guidance range  indicates improved performances from the prior-year quarter. This, along with higher uranium prices, is expected to have benefitted Cameco’s performance in the to-be-reported quarter.



What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Cameco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s 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 Cameco is 0.00%.

Zacks Rank: CCJ currently flaunts a Zacks Rank of 1.

Price Performance

Shares of Cameco have gained 80.1% over the past year compared with the industry’s 3.9% growth. Zacks Investment Research

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Stocks Poised to Beat Estimates

Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this time around:

Eldorado Gold EGO, scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.28% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.

Kinross Gold Corporation KGC, expected to release fourth-quarter 2023 earnings on Feb 14, presently has an Earnings ESP of +12.11% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Kinross Gold’s fourth-quarter earnings has moved up 13% in the past 30 days. The consensus estimate for KGC’s earnings for the quarter is pegged at 9 cents per share. It has an average trailing four-quarter earnings surprise of 40.9%.

Agnico Eagle Mines AEM, scheduled to release fourth-quarter 2023 earnings on Feb 15, currently has an Earnings ESP of +7.46% and a Zacks Rank of 3.

The consensus estimate for Agnico Eagle Mines’ earnings for the fourth quarter is pegged at 46 cents per share. Earnings estimates have moved 5% north in the past 30 days. It has an average trailing four-quarter earnings surprise of 9.9%.

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