Mining Stocks Q1 Earnings Roster For May 9: FNV, IAG & More

We are in the final lap of the first-quarter earnings season with 412 index members having reported their numbers as of Friday, May 5. More than 700 companies are expected to release quarterly results this week. This includes 43 members from the S&P 500 Index.

Total earnings of the S&P 500 members that have reported results across all sectors (accounting for 85.7% of the index’s total market capitalization) are up 14.2% from the year-ago period while revenues increased 7.3%. Of the companies that have reported, 73.3% of the companies posted an earnings beat, while 67.7% surpassed revenues estimates. Considering all the companies that are yet to report, the S&P 500 is anticipated to register a 12.7% growth in the quarter, outperforming the 7.4% growth witnessed in the fourth quarter. (Read more: A Positive & Reassuring Earnings Picture)

It is worth mentioning that the earnings growth trajectory had entered the positive territory in third-quarter 2016, after five quarters of back to back declines.

As per the Zacks Industry classification, the mining industry is grouped under the broader Basic Materials sector. So far, 95% of the sector participants on the S&P 500 index have reported quarterly numbers. Earnings for these companies increased a solid 16.2% from the same period last year while sales improved 5.4%.

Basic Materials is one of the six sectors that are projected to witness double-digit earnings growth in the first quarter. Overall earnings for the sector are anticipated to rise 15.9% while revenues are projected to increase 2.1%.

The mining industry regained ground last year after a harrowing 2015 that bore the brunt of a crash in commodity prices. The turnaround can primarily be attributed to the commodity’s upturn that aided investors renew their interest in the industry.

Let’s have a sneak peek into four mining companies that are slated to report first-quarter 2017 results on May 9.

Franco-Nevada Corporation (TO:FNV) , a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, and Africa is scheduled to release quarterly results after the market closes.

Franco-Nevada delivered a positive earnings surprise of 20.00% last quarter. The company has an average positive earnings surprise of 21.44% in the trailing four quarters.

Our proven model shows that Franco-Nevada is likely to beat earnings this quarter. This is because the company has the right combination of two key ingredients – a positive Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Franco-Nevada currently carries a Zacks Rank #3 and an Earnings ESP of +4.76%.

Toronto-based IAMGOLD Corporation (TO:IAG) explores, develops, and operates mining properties in North and South America, and West Africa. The company explores for gold, copper, zinc, and silver. IAMGOLD is scheduled to report quarterly numbers after the closing bell.

Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks Rank #1 stocks here.

Pan American Silver Corp. (NASDAQ:PAAS) , along with its subsidiaries, engages in silver mining and related activities are slated to release quarterly results after the market closes.

The company delivered in-line results in the last quarter. The company has an average positive earnings surprise of 83.76% in the last four quarters.

The combination of Pan American Silver’s Earnings ESP of +12.50% and a Zacks Rank #2 makes us reasonably confident of an earnings beat.

Silver Wheaton Corp. (NYSE:SLW) operates as a precious metals streaming company worldwide. It is the only mining company with 100% of its revenues coming from silver production. It will report quarterly numbers after the closing bell.

The company had delivered a positive earnings surprise of 11.76% in the last quarter. Silver Wheaton has a mixed earnings track record and delivered an average negative earnings surprise of 6.24% in the preceding four quarters.

Silver Wheaton currently carries a Zacks Rank #3, which when combined with ESP of -6.67%, makes a beat unlikely this quarter.

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Iamgold Corporation (IAG (LON:ICAG)): Free Stock Analysis Report

Franco-Nevada Corporation (FNV): Free Stock Analysis Report

Silver Wheaton Corp (SLW): Free Stock Analysis Report

Pan American Silver Corp. (PAAS): Free Stock Analysis Report

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