Earnings Preview: Good News For Oil, Bad News For Gold And Copper (SCCO, TRP, NEM, SU)

Earnings season for Q1 2013 is well on its way, with several bellwether commodity stocks already reporting better-than-expected results. Agribusiness giant Monsanto Company (MON) posted earnings that significantly beat out estimates: earnings rose 22%, while profits came in at $1.48 billion. Meanwhile, Halliburton (HAL) reported an unprofitable quarter, though the company added $1 billion to reserves tied to litigation involving the Deepwater Horizon rig explosion. Barrick Gold (ABX) also beat analyst expectations, clocking in an EPS of $0.86 [for more oil news and analysis subscribe to our free newsletter].

Below, we highlight four important commodity firms reporting earnings this Friday and Monday that investors should be watching:

  • Southern Copper Corporation (SCCO): This Phoenix-based copper company isGold Mining primarily engaged in mining, exploring and refining copper in Peru, Mexico and Chile. The company recently announced its new CFO, Raul Jacob Ruisanchez, and is expected to report Q1 earnings this Friday. Analyst estimates put EPS at $0.61, slightly below last quarter’s earnings of $0.63 a share. Revenues are also expected to come in slightly lower compared to Q4; average estimates are around $1.6 billion.
  • TransCanada Corporation (TRP): This company operates natural gas and oil pipelines, and has been on the radar of many investors following the Keystone Pipeline case. On Friday, analysts expected TransCanada to report earnings of $0.55 per share, an uptick from Q4′s $0.45 figure. Revenues, however, are expected to remain the same at $2.1 billion [see Keystone XL Pipeline: The Good, Bad and Ugly].
  • Newmont Mining Corporation (NEM): This popular gold miner is slated to report earnings on Monday. Analysts expect earnings per share to fall to $0.84 from the previously recorded $1.11 Q4 reading. Revenues are also expected to be lower, coming in at $2.3 billion.
  • Suncor Energy Inc. (SU): Another Canadian-based firm closely tied to the Keystone pipeline, Suncor Energy is expected to make somewhat of a turnaround from the previous quarter. Analyst put EPS estimates at $0.76, compared to Q4′s $0.65 reading. Last quarter, the company posted a net loss, but analysts expect revenues to increase to $10.2 billion.

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Disclosure: No positions at time of writing.

About Daniela Pylypczak

Daniela Pylypczak-Wasylyszyn is a regular contributor to CommodityHQ.com, where she primarily focuses on commodity producers equities. She is also an analyst for ETFdb.com, where she contributes articles and analysis each week. Since joining the team in 2011, Daniela has quickly grown to be one of the most widely-followed authors in the industry. Her articles are syndicated in a number of online publications, including Financial Advisor Magazine, Fidelity.com, and Yahoo! Finance. Daniela is also a contributor for TraderHQ.com and Dividend.com. Daniela graduated from DePaul University with a bachelor’s degree in finance and economics.
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