Agnico Eagle Mines Goes Negative

Agnico Eagle Mines (NYSE: AEM  ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Agnico Eagle Mines missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
Agnico Eagle Mines chalked up revenue of $336.4 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $343.4 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $459.6 million.

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 -$0.03. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. Non-GAAP EPS were -$0.03 for Q2 compared to $0.40 per share for the prior-year quarter. GAAP EPS were -$0.14 for Q2 compared to $0.25 per share for the prior-year quarter.

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 32.8%, much worse than the prior-year quarter. Operating margin was 0.6%, much worse than the prior-year quarter. Net margin was -7.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $375.6 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $1.56 billion. The average EPS estimate is $0.49.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,115 members out of 1,197 rating the stock outperform, and 82 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give Agnico Eagle Mines a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Agnico Eagle Mines is hold, with an average price target of $38.33.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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9/26/2016 3:23 PM
AEM $54.26 Down -0.07 -0.13%
Agnico-Eagle Mines CAPS Rating: **