Kinross Gold to Post Q1 Earnings: What's in the Cards for the Stock?

Kinross Gold Corporation KGC is slated to release first-quarter 2025 results after the closing bell on May 6.

The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once. In this timeframe, it delivered an earnings surprise of 23.6%, on average. It posted a negative earnings surprise of 13% in the last reported quarter. KGC is likely to have benefited from higher average realized gold prices in the quarter to be reported.

KGC’s shares have rallied 115.6% over the past year compared with the Zacks Mining – Gold industry’s 47.2% rise.

Let’s see how things are shaping up for this announcement.

What Our Model Unveils for KGC Stock

Our proven model predicts an earnings beat for Kinross 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 earning beat.

Earnings ESP: Earnings ESP for KGC is +11.07%. The Zacks Consensus Estimate for the first quarter is currently pegged at 22 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: KGC currently carries a Zacks Rank #2.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

What do KGC’s Revenue Estimates Say?

The Zacks Consensus Estimate for revenues for Kinross for the to-be-reported quarter stands at $1,294.9 million, reflecting a rise of around 19.7% from the year-ago quarter.

Factors to Watch For KGC Stock

Higher gold prices are likely to have supported the company’s performance in the March quarter. Gold prices are shooting up this year as worries over the global trade war have boosted safe-haven demand for bullion. The price rally has been driven by a surge in safe-haven demand amid the intense trade tussle, global economic uncertainties and a weaker U.S. dollar. Prices of the yellow metal climbed nearly 19% in the first quarter and are already up roughly 23% this year. Our estimate for first-quarter average realized gold price per ounce for KGC is pegged at $2,604, suggesting a 25.8% rise from the prior-year quarter.

Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast, which remains the lowest-cost asset within its portfolio, is likely to have achieved strong performance while Paracatu is expected to continue to have delivered steady production in the first quarter. 

KGC, like most miners, is exposed to higher production costs. It saw a 12.5% year-over-year rise in production costs of sales per ounce to $1,098 in the fourth quarter of 2024. The same also rose roughly 8% year over year to $1,020 in 2024. While KGC is taking actions to control costs, the inflationary pressure is likely to have continued in the first quarter, weighing on its overall financial performance.

Kinross Gold Corporation Price and EPS Surprise

Kinross Gold Corporation price-eps-surprise | Kinross Gold Corporation Quote

Basic Materials Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:

ICL Group Ltd ICL, scheduled to release earnings on May 19, has an Earnings ESP of +12.50% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for ICL’s earnings for the first quarter is currently pegged at 8 cents.

IAMGOLD Corporation IAG, slated to release earnings on May 6, has an Earnings ESP of +9.96% and carries a Zacks Rank #3 at present.

The consensus mark for IAG’s first-quarter earnings is currently pegged at 10 cents.

Nutrien Ltd. NTR, scheduled to release earnings on May 7, has an Earnings ESP of +2.41%.

The Zacks Consensus Estimate for NTR's earnings for the first quarter is currently pegged at 33 cents. NTR currently carries a Zacks Rank #3.

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

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