A month has gone by since the last earnings report for Agnico Eagle Mines (AEM). Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Agnico due for a pullback? 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 drivers.
Agnico Eagle's Q2 Earnings Beat Estimates on Higher Gold Prices
Agnico Eagle Mines reported adjusted earnings of $1.94 per share for the second quarter of 2025, up from $1.07 in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of $1.83.
The company generated revenues of $2,816.1 million, up nearly 35.6% year over year. The top line surpassed the Zacks Consensus Estimate of $2,553 million.
Operational Highlights
Payable gold production was 866,029 ounces in the reported quarter, down from 895,838 ounces in the prior-year quarter. The figure missed our estimate of 866,598 ounces.
Total cash costs per ounce for gold were $933, up from $870 a year ago. It outpaced our estimate of $918.
Realized gold prices were $3,288 per ounce in the quarter, up from $2,342 a year ago. It beat our estimate of $2,929.
AISC were $1,289 per ounce in the quarter compared with $1,169 per ounce a year ago. It surpassed our estimate of $1,212.
Financial Position
Agnico Eagle ended the quarter with cash and cash equivalents of $1,558 million, up 69% year over year. Long-term debt was around $544.6 million.
Total cash from operating activities amounted to $1,845 million in the second quarter, up from $961 million a year ago.
Outlook
For full-year 2025, the company expects gold production to range between 3.3 and 3.5 million ounces, with a midpoint estimate of 3.4 million ounces. Total cash costs per ounce are projected between $915 and $965, while AISC is forecast in the range of $1,250 to $1,300 per ounce, with a midpoint of $1,275.
Exploration and corporate development expenses are expected to be between $215 million and $235 million, with a midpoint of $225 million. Depreciation and amortization expenses are forecasted to be $1.55-$1.75 billion, averaging $1.65 billion. The company anticipates general and administrative expenses to fall in the $190 million to $210 million range, with other costs projected between $105 million and $115 million.
The effective tax rate for 2025 is expected to be between 33% and 38%, with cash taxes estimated in the range of $1.1 billion to $1.2 billion. The company also plans capital expenditures (excluding capitalized exploration) of $1.75 billion to $1.95 billion, and capitalized exploration spending is forecasted between $290 million and $310 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 10.88% due to these changes.
VGM Scores
Currently, Agnico has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Agnico has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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