Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $0.55 million, indicating a decline of 21.4% from the prior-year quarter. The company is expected to report a loss per share of 3 cents compared with a loss of 10 cents per share in the year-ago quarter. The estimates have been remained stable over the past 30 days.
Q3 Results
In the last reported quarter, Energy Fuels reported revenues of $0.5 million, which improved 15% year over year but fell short of the Zacks Consensus Estimate of $2 million. The company reported a loss per share of 8 cents, wider than the year-ago quarter’s loss of 7 cents per share and the Zacks Consensus Estimate of a loss of 5 cents.
The company has a trailing four-quarter negative earnings surprise of 73.3%, on average.
Energy Fuels Inc Price and EPS Surprise 
Factors to Note
Energy Fuels has strategically opted not to enter into any uranium sales commitments for 2020 due to lower prices. Consequently, its uranium production is expected to be added to existing inventories, which were anticipated to total between 670,000 and 700,000 pounds at 2020-end. The company intends to hold this inventory until prices for uranium go up. It is also holding on to its vanadium until spot prices rise significantly above current levels.
Notably, the company did not sell uranium or vanadium during the first nine-month period of 2020. Considering there has been no improvement in uranium prices in fourth-quarter 2020, there will not be any exception to this trend. Meanwhile, the company has been pursuing new sources of revenue, including additional Alternate Feed Materials or recycling of uranium bearing materials that are not derived from conventional ore.
During 2020, the company expects to recover approximately 170,000 pounds to 200,000 pounds of Uranium oxide concentrate (“U3O8”) at the White Mesa Mill from in-circuit uranium inventories extracted from the recent vanadium Pond Return campaign from Alternate Feed Materials and from other Pond Return activities. Energy Fuel’s revenues for the quarter under review are likely to reflect fees for ore received from a third-party uranium mine.
On Oct 6, the company announced that it has repaid all of its debt — achieving debt free status for the first time since 2012. This is likely to have reduced interest expenses, thereby, might have favored margins in the fourth quarter. Further, the company’s ongoing efforts to lower costs are likely to get reflected in the to-be-reported quarter’s bottom line.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Energy Fuels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Energy Fuels is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Price Performance
Energy Fuel’s shares have soared 196% in the past six months compared with the industry’s rally of 74.6%.
Stocks Poised to Beat Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post earnings beat this quarter:
Lennar Corporation LEN has an Earnings ESP of +7.99% and a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cintas Corporation CTAS currently has a Zacks Rank #3 and an Earnings ESP of +1.42%.
Titan Machinery Inc. TITN has an Earnings ESP of +27.3% and a Zacks Rank #3, at present.
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