Agnico-Eagle Mines Ltd. Earnings: Everything You Must Know Now

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Agnico-Eagle Mines Ltd. (NYSE:AEM) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Agnico-Eagle Mines Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $0.77 in the year-earlier quarter.

Revenue: Decreased 26.8% to $336.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Agnico-Eagle Mines Ltd. reported adjusted EPS loss of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.1. It missed the average revenue estimate of $382.8 million.

Quoting Management: “Production for the second quarter was in line with our expectations, and we anticipate meeting our 2013 guidance with stronger second half production expected at LaRonde, Kittila and Meadowbank, and the planned start of production at Goldex,” said Sean Boyd, President and Chief Executive Officer. “Given the current low gold price environment, we are in the process of reviewing all aspects of our business. Today we are announcing capital and other costs reductions of approximately $50 million for the remainder of 2013. Additionally, we estimate that 2014 capital expenditures at existing mines and projects will be in excess of $200 million lower than our previous estimate of approximately $600 million. In spite of these cost reductions and spending deferrals, our growth profile in 2014 and 2015 remains intact,” added Mr. Boyd.

Key Stats (on next page)…

Revenue decreased 19.98% from $420.42 million in the previous quarter. EPS increased to $-0.03 in the quarter versus EPS of $-0.03 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.53 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $1.56 to a profit of $0.6 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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