Should You Buy Agnico Eagle Mines Stock Ahead of Q4 Earnings?

Agnico Eagle Mines Limited AEM is slated to report fourth-quarter 2025 results after the closing bell on Feb. 12. Its results are expected to reflect the benefits of higher gold prices and strong production amid cost headwinds.

The Zacks Consensus Estimate for fourth-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $2.53 per share, suggesting a 100.8% rise from the prior-year reported number. The Zacks Consensus Estimate for revenues currently stands at $3.24 billion, indicating a 45.7% increase on a year-over-year basis.

AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being roughly 11.6%.

Q4 Earnings Whispers for AEM

Our proven model predicts an earnings beat for AEM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. That is just the case here.

AEM has an Earnings ESP of +6.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping AEM’s Q4 Results

The company’s fourth-quarter performance is likely to have benefited from higher gold prices. Gold prices racked up strong gains last year as worries over the global trade war boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid an intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. 

Heightened geopolitical tensions, including the unrest in Iran with the possibility of U.S. intervention, a weaker greenback, fresh tariff threats, and renewed concerns over the independence of the Federal Reserve, drove bullion to record levels recently, with prices rocketing to a fresh high of nearly $5,600 per ounce in late January. While gold prices have pulled back from that level, partly due to aggressive profit-taking and a rebound in the U.S. dollar, they remain elevated, currently hovering just above $5,000 per ounce. 

Prices of the yellow metal closed nearly 13% higher in the fourth quarter and surged roughly 65% in 2025. Our estimate for AEM’s realized gold prices is $3,593 per ounce for the fourth quarter, suggesting a 35% year-over-year increase.

Continued strong gold production is likely to have supported the company’s performance. Solid production at LaRonde, Macassa and Canadian Malartic on higher gold grades is expected to have aided its production. Our estimate for payable gold production is pegged at 839,674 ounces for the fourth quarter.

AEM’s third-quarter 2025 results showed increases in unit costs. Its total cash costs per ounce for gold were $994, up 8% from $921 a year ago and increased from $933 in the prior quarter. All-in-sustaining costs (AISC) were $1,373 per ounce, marking a roughly 6% increase from the prior quarter and a 7% year-over-year rise. 

The company forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While Agnico Eagle is taking action to control costs, the inflationary pressure is likely to have continued in the fourth quarter.

AEM Stock’s Price Performance and Valuation

Thanks to the rally in gold prices and solid earnings performance, AEM’s shares have performed impressively on the bourses over the past year. Its shares have surged 109.3% in a year, underperforming the Zacks Mining – Gold industry’s 119.4% rise, while topping the S&P 500’s increase of 16.8%. With respect to its major gold mining peers, Barrick Mining Corporation B, Newmont Corporation NEM and Kinross Gold Corporation KGC have rallied 167.4%, 159.4% and 180%, respectively, over the same period.

AEM’s One-year Price Performance

From a valuation standpoint, Agnico Eagle is currently trading at a forward 12-month earnings multiple of 17.28, a roughly 27.7% premium to the peer group average of 13.53X. AEM is also trading at a premium to Barrick Mining, Newmont and Kinross Gold. Agnico Eagle and Newmont have a Value Score of C. Barrick Mining and Kinross Gold have a Value Score of B, each.  

AEM’s P/E F12M Vs. Industry, B, NEM & KGC

Investment Thesis for AEM Stock

Agnico Eagle is well-placed for growth on the advancement of its key value drivers and pipeline projects, including Odyssey, Detour Lake and Hope Bay, which are expected to provide additional growth in production and cash flows. The merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer with an extensive pipeline of development and exploration projects to drive sustainable growth.

AEM has a strong liquidity position and generates substantial cash flows, which allows it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Higher gold prices should also boost AEM’s profitability and cash flow generation.

Agnico Eagle, however, is exposed to higher production costs, which may weigh on its profit margins and overall financial performance. This calls for prudent cost management to maintain competitiveness and sustain margins.

Final Thoughts: Hold Onto AEM Shares

AEM is backed by a solid lineup of growth initiatives and a healthy balance sheet. Elevated gold prices should support stronger margins and improved cash flow. Favorable earnings growth expectations and rising earnings estimates are the other positives. However, elevated cost levels remain a concern. The company’s stretched valuation also might not offer an attractive entry point at this time. Holding onto the AEM stock will be prudent for investors who already own it, awaiting greater visibility on the company’s prospects after the upcoming earnings report.  

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research