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

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.