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Shares of Cameco Corp (CCO) rose by more than 8% on Friday after the uranium company announced better-than-expected financial results for the quarter ended March 31. Cameco’s revenue for 1Q Read More... The post Cameco Posts Better-Than-Expected Results In 1Q; Shares Soar 8% appeared first on TipRanks Financial Blog.
Shares of Cameco Corp (CCO) rose by more than 8% on Friday after the uranium company announced better-than-expected financial results for the quarter ended March 31.
Cameco’s revenue for 1Q 2021 came in at C$290 million, a decrease of 16.2% from the revenue of C$346 million reported in 1Q 2020.
Meanwhile, the company reported a net loss of C$5 million (C$0.01 per share), compared to a loss of C$19 million (C$0.05 per share) in 1Q 2020. Cameco partially attributed the loss to the additional costs resulting from the closure of the Cigar Lake mine for approximately four months, starting in December 2020. The Cigar Lake mine reopened in April.
Due to the uncertainty surrounding COVID-19, the company said it would not be able to provide a financial outlook for 2021 until it knows the rate at which it will be able to sustainably operate the mine.
On an adjusted basis, the company lost C$29 million (C$-0.07 per share), compared to an adjusted profit of C$29 million (C$0.07 per share) reported in the first quarter of 2020.
Analysts polled by Investing.com were forecasting a loss of C$0.078 on revenue of C$251.19 million.
Cameco's president and CEO Tim Gitzel said, “Globally, we see demand for both traditional and non-traditional uses of nuclear power growing as the increasing focus on electrification while phasing out carbon-intensive sources of energy continues to take hold. In Europe, we have seen nuclear move another step closer to being included in the EU sustainable finance taxonomy following a rigorous scientific assessment that concluded there are no scientific arguments supporting its exclusion. In addition, at the recent global leaders’ summit on climate, aggressive plans to reduce carbon emissions and achieve net-zero carbon goals were discussed, with the US announcing a goal to cut up to 52% of its greenhouse gas emissions by 2030, leveraging existing and advanced nuclear reactor technology in its clean energy initiatives."
So far, the company has added nine million pounds of U3O8 to its portfolio. (See Cameco Corp stock analysis on TipRanks)
In April, Raymond James analyst Brian MacArthur maintained a Buy rating on CCO with an $18.09 (C$22.00) price target for an 8% downside potential.
Overall, CCO scores a Moderate Buy consensus rating among analysts based on 5 Buys, 2 Holds, and 1 Sell. The average analyst price target of C$23.02 implies a 3.6% downside potential to current levels. Shares have risen by approximately 40% year-to-date.
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