Investing

Earnings Previews: Barrick, Moderna, Nikola

More than 1,500 companies are expected to report quarterly earnings this week. Of two in our watch list for Monday afternoon, one (Diamondback Energy) beat on both revenue and profits, while the other (NXP Semiconductors) missed on profits. Three companies we previewed that reported early Tuesday (BP, Pfizer and Under Armour) all beat on both the top and bottom lines.

Monday, we previewed three companies set to report results after markets close Tuesday (Activision Blizzard, Lyft and T-Mobile) and three more set to report results before markets open Wednesday (Cenovus Energy, Discovery and Norwegian Cruise Lines).

Earlier in the day, we previewed five firms set to report earnings after markets close Wednesday (Albemarle, Fisker, MGM Resorts, Qualcomm and Skillz).

Here’s a look at three companies scheduled to report results before markets open on Thursday.

Barrick

Over the past 12 months, the price of gold has dropped by about 6%. Barrick Gold Corp. (NYSE: GOLD) has seen its share price dive by about 29% over the same period.

Last month the company reported preliminary results indicating third-quarter gold sales of 1.07 million ounces and copper sales of 101 million pounds. Gold production totaled 1.09 million ounces and copper production totaled 100 million pounds. The average market price for gold in the quarter was $1,790 per ounce, while the average market price for copper was $4.25 per pound. Since then a slight increase in the share price has turned south. If fears of inflation continue to rise, gold prices are likely to rise with them. That, of course, is good for Barrick.

Analysts continue to be bullish on the stock, however, with 18 of 23 brokerages giving the shares a Buy or Strong Buy rating, and the rest have a Hold rating on the stock. At a recent price of around $18.40, the upside potential based on a median price target of $27 is about 47%. At the high price target of $35, the upside potential is 90%.

Third-quarter revenue is forecast at $287 billion, which would be down less than 1% sequentially and about 19% lower year over year. Adjusted earnings per share (EPS) are forecast at $0.23, down 20% sequentially and 44% lower year over year. For the full year, current estimates call for EPS of $1.16, up 0.8%, on sales of $12.11 billion, down 3.9%.

The stock trades at 15.8 times expected 2021 earnings, 14.8 times estimated 2022 earnings and 15.1 times estimated 2023 earnings. The stock’s 52-week range is $17.56 to $29.60. Barrick pays an annual dividend of $0.36 (yield of 1.95%).