Agnico-Eagle Mines Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Agnico-Eagle Mines (NYS: AEM) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Agnico-Eagle Mines beat expectations on revenues and crushed expectations on earnings per share.

Compared with the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
Agnico-Eagle Mines logged revenue of $474.1 million. The six analysts polled by S&P Capital IQ hoped for revenue of $442.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $412.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.59. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS of $0.46 for Q1 were 77% higher than the prior-year quarter's $0.26 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.6%, 280 basis points better than the prior-year quarter. Operating margin was 29.0%, 670 basis points better than the prior-year quarter. Net margin was 16.6%, 560 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $421.2 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $1.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,155 members out of 1,237 rating the stock outperform, and 82 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 give Agnico-Eagle Mines a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Agnico-Eagle Mines is outperform, with an average price target of $42.75.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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