Ivanhoe Electric (IE) shares soared 12% in the last trading session to close at $11.4. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 26.6% gain over the past four weeks.
In the March-end quarter, Ivanhoe Electric posted revenues of $0.73 million, which marked a 104% year-over-year increase from $0.36 reported in the prior year quarter. The gross profit in the quarter surged 70% year-over-year to $0.44 million in the March-end quarter. Ivanhoe Electric posted a net loss of $34 million, which was a significant improvement from the net loss of $60 million reported in the year-ago quarter.
This mineral exploration company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +59%. Revenues are expected to be $0.74 million, up 37% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Ivanhoe Electric, the consensus EPS estimate for the quarter has been revised 29.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ivanhoe Electric is part of the Zacks Mining - Miscellaneous industry. Materion (MTRN), another stock in the same industry, closed the last trading session 1.2% higher at $85.81. MTRN has returned 9.2% in the past month.
Materion's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.16. Compared to the company's year-ago EPS, this represents a change of -18.3%. Materion currently boasts a Zacks Rank of #3 (Hold).
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Ivanhoe Electric Inc. (IE): Free Stock Analysis Report Materion Corporation (MTRN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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