Yamana Stock: Yamana Gold Inc. in Trouble This Earnings Season, Analyst

Yamana StockA leading investment research firm advises investors not to expect Yamana Gold Inc. (NYSE:AUY, TSE:YRI) to beat its consensus estimate, as the intermediate gold producer with a focus on Canada and Latin America is slated to post its fourth-quarter earnings after the stock market closes on Thursday.

Zacks Equity Research believes that “its proven model does not conclusively show that Yamana will beat the Zacks Consensus Estimate in the fourth quarter.” (Source: “Yamana Gold (AUY) to Report Q4 Earnings: What’s in Store?” Yahoo! Finance, February 18, 2016.)

The Most Accurate Estimate currently stands at a loss of $0.03, while the Zacks Consensus Estimate is pegged at a loss of $0.01, the research firm said.

Meanwhile, 13 analysts polled by Capital IQ predict that Yamana will incur a (loss) of $(0.02) per share, unchanged from the year-earlier period. They also forecast the gold miner’s fourth-quarter revenue will drop 12.2% to $476.5 million.

Zacks says that Yamana has posted an average negative earnings surprise of 83.34% in the trailing four quarters. Its adjusted loss for third-quarter 2015 matched expectations. (Source: Ibid.)

Shares of the Toronto, Canada-based miner have been benefiting from a recent rebound in gold prices and a crash in stock markets.

Since the beginning of the year, the company’s U.S.-listed shares have surged 43% to trade at $2.66 per share midday Thursday.

Gold has advanced 15% this year, compared to a six-percent drop in the S&P 500 and a 10% slide in the tech-heavy NASDAQ Composite.

Gold prices for April delivery on the New York Mercantile Exchange’s Comex division were up 0.8% at $1,221.50 in afternoon trading on Thursday.

Fourteen analysts recommend investors hold stock in Yamana Gold Inc., four analysts have issued a “Buy” recommendation, while one analyst has a “Sell” rating on Yamana stock.

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