Commodities & Metals

What to Expect From Barrick Earnings

After the markets close Wednesday, Barrick Gold Corp. (NYSE: ABX) will report its fourth-quarter financial results. Thomson Reuters has consensus estimates of $0.13 in earnings per share (EPS) and $2.48 billion in revenue. In the fourth quarter of the previous year, the world’s largest gold mining company posted EPS of $0.37 and $2.93 billion in revenue.

Barrick stock has lost 38% in the past year. The company’s dividend yield is 1.7%, which should count as something of a miracle after the company wrote down $4.2 billion in 2013. The firm’s operating loss in 2013 totaled $8.8 billion. In early November, an analyst at J.P. Morgan recommended a pair trade: buy Newmont and sell Barrick, thinking that the merger between the two would come back with Barrick as the acquirer. Stranger things have happened.

24/7 Wall St. found a recent analyst call on Barrick to shed some more light on the stock. Citigroup reiterated a Buy rating and lowered the price target to $18 from $19. Ultimately this call implies an upside of nearly 50% from Tuesday’s close of $12.03. It is also the highest listed price target among analysts. The consensus price target of $13.37 only implies upside of about 11%.

The 50-day moving average currently resides under the share price at $11.63. Barrick shares crossed over that moving average in mid-January, but prior to that point the moving average had acted as resistance reaching back into the third quarter. The 200-day moving average is an overhang that reads at $14.88.

Shares of Barrick were down 0.8% at $11.93 in the first half of Wednesday’s trading day. The stock has a 52-week trading range of $10.04 to $21.45.

ALSO READ: A True Surprise in Global Gold Demand Trends for 2014, 2015 and Beyond

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