Iamgold Corp. (IAG, Financial) will report its operating and financial results for the second quarter of fiscal 2017 after the market closes on Aug. 9.
For the quarter, analysts forecast the company will report adjusted EPS ranging between a loss of two cents and a net profit of two cents per share. A total of 12 analysts were surveyed on the Canadian mid-tier gold producer’s second-quarter earnings. The average estimate is zero cents, which would represent a 100% downside from last year's EPS of one cent.Â
Source: Yahoo Finance
Revenue is forecasted to come in at $267.07 million on average. This is the mean of three surveyed analysts. Second-quarter estimates for revenue range between a low of $261.67 million and a high of $274.58 million.
Source: Yahoo Finance
The estimate represents a 14.9% growth from the second quarter of fiscal 2016.
Analysts base their estimates on quarterly attributable gold production, which should range between 210,340 ounces and 223,670 ounces and a gold price that should be about $1,257 per ounce. The total cash costs should range between $740 and $780 per ounce and the all-in sustaining cost (AISC) between $1,000 and $1,080 per ounce of gold sold.
With the earnings announcement, Iamgold will also provide the market with updated financial results.Ă‚
As of the first quarter, the company Ă‚ had approximately $1.07 billion in cash on hand and securities that can be readily converted into cash, or $2.31 per share.
Total debt was $899.3 million. When considering an equity of $2.25 billion, it leads to a total debt-equity ratio of approximately 40 versus an industry average of 50.10.
The interest coverage ratio of -2.92 raised some red flags regarding the miner's ability to pay interest expenses on the outstanding debt.
A current ratio of 2.02 versus an industry average of 2.64.
GuruFocus gives Iamgold a financial strength rating of 5 out of 10 and a profitability and growth rating of 5 out of 10.
Iamgold is currently trading around $5.52 versus the analysts’ average target price of $6.33. The gold producer has a market capitalization of $2.32 billion, a price-book (P/B) value of 1.14 and a price-sales (P/S) ratio of 2.26 times.
The company has an enterprise value of $2.44 billion that considering a total volume of 10.820 million ounces in proven and probable gold reserves, leads to an EVO metric of $225.51, which is near the industry average.
The EV/Ebitda ratio is 7.36.
The gold stock has a recommendation rating of 2.5 out of a total of 5. This means analysts are divided on whether Iamgold is a hold or a buy.
When we multiply the forecasted 2017 EPS of three cents by the forward price-earnings (P/E) ratio of 184, it yields $5.52, which is the current market valuation of this gold stock.
Disclosure: I have no positions in Iamgold Corp.
