Eldorado Gold Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?
Eldorado Gold Corporation EGO is slated to report second-quarter 2025 results on July 31, after market close. EGO is expected to deliver a year-over-year improvement in earnings in the quarter aided by upbeat gold prices. The Zacks Consensus Estimate for EGO’s second-quarter 2025 earnings has moved up 23.1% over the past 60 days to 48 cents per share. The consensus mark indicats a 45% increase from the year-ago actual. Image Source: Zacks Investment ResearchEldorado Gold’s Earnings Surprise HistoryThe company’s earnings outpaced the Zacks Consensus Estimates in three of the last four quarters, while missing in one quarter. It has a trailing four-quarter earnings surprise of 5.95% on average.Image Source: Zacks Investment ResearchWhat the Zacks Model Unveils for EGO StockOur proven model predicts an earnings beat for Eldorado Gold this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. Earnings ESP: EGO has an Earnings ESP of +6.11%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Likely to Have Shaped Eldorado Gold’s Q2 PerformanceIn the first quarter of 2025, EGO produced 115,893 ounces of gold, reflecting a slight 1% year-over-year decline as higher output at Kisladag and Efemcukuru was offset by lower numbers at Lamaque and Olympias. EGO’s full-year 2025 production guidance stands at 460,000–500,000 ounces, implying a 4–12% decline from 2024. As the company anticipates higher output in the second half of the year, second-quarter total production is likely to be lower than the 122,319 ounces produced in the second quarter of 2024.For Kisladag, 2025 output is forecast between 160,000 and 170,000 ounces, suggesting a 2–8% decline year over year due to lower grades that will be offset slightly by higher throughput. The mine produced 38,990 ounces in the year-ago quarter and we expect second-quarter 2025 output to be lower.For Lamaque, the company expects 2025 production between 170,000 and 180,000 ounces, which projects a decline of 8-14%. Second-quarter 2025 production is likely to have increased with higher grades expected as a result of mine sequencing. We expect the mine to report a higher figure than the 40,438 ounces of produced in the first quarter of 2024. The mine had produced 47,391 ounces of gold in the second quarter of 2024. Efemcukuru’s production guidance for 2025 is at 70,000-80,000 ounces. This suggests in-line results to a 13% decline year over year. Production in the second quarter is expected to be consistent with the first quarter output of 19,307 ounces, which suggests a 14% year-over-year decline. For Olympias, 2025 guidance is set at 60,000–70,000 ounces, indicating a potential year-over-year decline of 14% to a modest increase of 1%. Production in the second quarter of 2025 is expected to have risen with increased throughput following the modifications made to the flotation circuit. We expect the figure to be higher than the year-ago quarter’s gold output of 13,541 ounces.In the April-June 2025 period, gold prices averaged around $3.301.42 per ounce, marking a 41% year-over-year increase. Tariff threats, financial uncertainty, geopolitical tensions and solid demand from central banks boosted gold prices. Prices had even reached the $3,500 per-ounce mark for the first time.Meanwhile, higher gold prices will elevate royalty expenses in Greece and Türkiye as the royalty structures are calculated on a sliding scale linked to the gold price. This, combined with increased contractor and labor costs and fuel prices, is anticipated to have led to higher production costs for Eldorado Gold in the second quarter. EGO’s continued focus on operational efficiencies and productivity is likely to have offset the impacts.EGO’s Price Performance & ValuationEGO shares have gained 8.5% in the past three months, outpacing the Zacks Mining - Gold industry’s growth of 7.9%. The Canadian mid-tier gold and base metals producer has performed better than its peers like IAMGOLD Corporation IAG and Equinox Gold EQX, which have declined 2.1% and 5.9%, respectively.EGO’s Price Performance vs Industry, IAMGOLD & Equinox GoldImage Source: Zacks Investment ResearchEldorado Gold is currently trading at a forward price/sales ratio of 2.18 compared with the industry's 3.42.Image Source: Zacks Investment ResearchPeers IAMGOLD and Equinox Gold are cheaper options, trading at a forward price/sales ratio of 1.55 and 1.46, respectively.Investment Thesis on EGOEGO’s long-term demand prospects are supported by its long-life, high-quality asset portfolio and presence in solid mining jurisdictions. The company’s financial position helps it invest in growth projects. Eldorado Gold is set to take its annual gold production to 660,000-720,000 ounces in 2027, suggesting 33% growth from 2024. Copper production is expected to start in 2026 and reach 70 million pounds by 2027. Gold demand remains robust, driven by safe-haven investment, central bank purchases and increasing use in sectors like energy and healthcare. Copper demand is expected to grow, driven by electric vehicles and renewable energy and infrastructure investments.Should You Buy EGO Stock Now?Eldorado Gold is expected to post strong second-quarter results, potentially surpassing estimates, mainly driven by higher gold prices. However, lower production levels for the year remain a concern. Given the stock’s currently elevated valuation compared to peers, new investors may be better off waiting for a more attractive entry point. Existing shareholders should consider holding the stock to benefit from its robust long-term fundamentals and exposure to gold and base metals. Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iamgold Corporation (IAG): Free Stock Analysis Report Eldorado Gold Corporation (EGO): Free Stock Analysis Report Equinox Gold Corp. (EQX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks
