Kirkland Lake Gold (KL) Down 18.1% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Kirkland Lake Gold (KL). Shares have lost about 18.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Kirkland Lake Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Kirkland Lake Gold’s Q3 Earnings Lag Estimates, Sales Up

Kirkland Lake Gold reported net earnings of $202 million or 73 cents per share in third-quarter 2020 compared with $176.6 million or 83 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 91 cents that missed the Zacks Consensus Estimate of 92 cents.

The company recorded revenues of $632.8 million, up 65.9% year over year.

Operational Highlights

Total gold production was 339,584 ounces in the third quarter, up 37% year over year. Average realized price of gold was $1,907 per ounce, up 28.7% year over year.

Operating cash costs per ounce for gold rose 41.5% year over year to $406. AISC for gold rose 57.7% year over year to $886 per ounce in the quarter.

Financial Position

At the end of the third quarter, Kirkland Lake Gold had cash and cash equivalents of $848.5 million, up 37.6% year over year.

Net cash provided by operating activities rose 36.1% year over year to $431.1 million in the quarter.

Guidance

For 2020, the company expects total gold production between 1,350,000 ounces and 1,400,000 ounces, unchanged from earlier view. AISC for gold is expected to be $790-$810 per ounce, also unchanged from the prior guidance. Operating cash costs per ounce for gold projection is retained at $410-$430.


How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report


To read this article on Zacks.com click here.