Cameco Gears Up to Report Q4 Earnings: What's in Store?

Core Viewpoint - Cameco Corporation (CCJ) is expected to report its fourth-quarter 2024 results on February 20, with earnings estimates showing a significant improvement compared to the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for CCJ's earnings is 23 cents per share, reflecting a 53% increase from the same quarter last year, with a 28% upward revision in estimates over the past 60 days [2]. - Revenue estimates for Cameco stand at $744 million, indicating a 20$76.75 per pound in Q4, which is 7% lower year-over-year [9]. Operational Challenges - Cameco's Inkai mine is facing procurement and supply-chain issues, particularly with sulfuric acid deliveries, leading to a reduced production outlook [10]. - Annual UF6 production at Port Hope is projected to be between 11,000 and 11,500 tons for 2024, lower than previous expectations due to operational issues [11]. Fuel Services Segment - Fuel services production for 2024 is expected to be between 13.5-14.5 million kgU, with sales deliveries anticipated at 12-13 million kgU [12]. - Improvements in production and sales for fuel services are likely to positively influence CCJ's fourth-quarter performance [13]. Cost Management - The average unit cost of production at McArthur River/Key Lake is expected to be higher due to production ramp-up, while costs in the fuel services segment are also anticipated to be elevated [14]. - The company is making progress in reducing administration, exploration, and operating costs, which may help offset elevated costs on earnings [15]. Strategic Developments - In November 2023, CCJ acquired a 49% interest in Westinghouse Electric Company, with expected adjusted EBITDA contributions between $460 million and$530 million for 2024 [16]. Stock Performance - Shares of Cameco have increased by 11.9% over the past year, contrasting with an 8.6% decline in the industry [17].