Cameco Earnings: Here’s Why the Stock is Falling Now

Cameco Corp. (NYSE:CCJ) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.82%.

Cameco Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.25% to $0.15 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 9.32% to $421 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cameco Corp. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $523.95 million.

Quoting Management: “Despite the prolonged weakness in the uranium market, our strong contract portfolio has continued to serve us well,” said Tim Gitzel, president and CEO, “providing us with average realized prices that continue to be above the current uranium spot price.
“This year, we have undergone some restructuring with the intent of increasing profitability and achieving a sustainable 10% future cost reduction. The changes we’ve made are part of our commitment to improving near-term financial results and creating shareholder value by growing the company and remaining a low-cost producer. We continue to focus on achieving our strategy to profitably increase production, and look forward to Cigar Lake starting production later this year as a highlight of our progress toward that goal.”

Key Stats (on next page)…

Revenue decreased 3.63% from $436.86 million in the previous quarter. EPS increased 114.29% from $0.07 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.3 to a profit $0.24. For the current year, the average estimate has moved down from a profit of $1.1 to a profit of $0.95 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)