Eldorado Gold Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?

Core Viewpoint - Eldorado Gold Corporation (EGO) is expected to report a significant year-over-year improvement in earnings for Q2 2025, driven by rising gold prices, with an estimated earnings per share of 48 cents, reflecting a 45% increase from the previous year [1][4]. Earnings Estimates - The Zacks Consensus Estimate for EGO's Q2 2025 earnings has increased by 23.1% over the past 60 days [1]. - EGO's earnings surprise history shows that the company has outperformed estimates in three of the last four quarters, with an average surprise of 5.95% [2][3]. Production and Guidance - In Q1 2025, EGO produced 115,893 ounces of gold, a slight 1% decline year-over-year [6]. - The full-year 2025 production guidance is set at 460,000–500,000 ounces, indicating a 4–12% decline from 2024 [7]. - Specific mine outputs for Q2 2025 are expected to be lower than the previous year, with Kisladag and Lamaque showing declines [8][9][10][11]. Gold Prices and Market Conditions - Average gold prices in Q2 2025 are projected to be around $3,301.42 per ounce, marking a 41% year-over-year increase [12]. - Factors contributing to rising gold prices include tariff threats, financial uncertainty, geopolitical tensions, and strong demand from central banks [12]. Cost Pressures - Higher gold prices are anticipated to increase royalty expenses in Greece and Türkiye, while rising contractor, labor, and fuel costs are expected to elevate overall production costs for EGO [13]. Stock Performance - EGO shares have increased by 8.5% over the past three months, outperforming the Zacks Mining - Gold industry, which grew by 7.9% [14]. - EGO is currently trading at a forward price/sales ratio of 2.18, compared to the industry's 3.42 [17]. Long-term Outlook - EGO's long-term demand prospects are supported by its high-quality asset portfolio and solid mining jurisdictions, with plans to increase annual gold production to 660,000-720,000 ounces by 2027 [19]. - The company is also expected to start copper production in 2026, reaching 70 million pounds by 2027 [19].