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Earnings Previews: Barrick Gold Corp. (NYSE: GOLD)
By: 24/7 Wall St. | May 3, 2022

• Here is a look at four companies set to report results on Wednesday or Thursday.

Barrick Gold

Over the past 12 months, the price of gold has increased by about 3.8%. Barrick Gold Corp. (NYSE: GOLD) has seen its share price rise by about 8.2% over the same period. Barrick reports quarterly results before Wednesday’s opening bell.

The current geopolitical tensions pushed gold futures to a high in early March of around $2,000 and Barrick stock to a 52-week high at the same time. A strong dollar, a 10-year Treasury note carrying a 3% interest rate and an expected federal interest rate hike on Wednesday have combined to weigh on the price of gold in the past few weeks. Unlike the dollar and U.S. Treasuries, gold is a non-yielding asset that raises the opportunity cost of holding the yellow metal instead of dollars or Treasury notes.

Analysts remain bullish on Barrick stock, with 19 of 25 brokerages having a Buy or Strong Buy rating while the rest have a Hold rating. At a share price of around $22.20, the upside potential based on a median price target of $28 is about 26.1%. At the high price target of $31.75, the upside potential is 43%.

First-quarter revenue is forecast at $2.78 billion, down 15.9% sequentially and about 6.1% lower year over year. Adjusted EPS are forecast at $0.24, down 31.8% sequentially and down 17.2% year over year. For full fiscal 2022, estimates call for EPS of $1.15, down 0.6%, on sales of $12.05 billion, down 0.5%.

Barrick stock trades at 19.2 times expected 2022 earnings, 17.8 times estimated 2023 earnings of $1.24 and 18.2 times estimated 2024 earnings of $1.22 per share. The stock’s 52-week range is $17.27 to $26.07. Barrick pays an annual dividend of $0.37 (yield of 3.57%). Total shareholder return for the past year was 8.2%.

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