Cameco Corporation (TSX:CCO) shares tumbled more than 7% after the Saskatoon, Saskatchewan-based uranium producer posted mixed results for the second quarter.
Revenue fell 14% year-over-year from $558 million to $482 million, however, this was ahead of the consensus analyst expectation of $352.87 million.
It posted an adjusted loss per share of $0.01, compared to adjusted earnings per share of $0.18 in 2Q 2022.
This was $0.10 below the Street estimate of earnings per share of $0.09.
Cameco noted that unrealized losses on its US dollar cash balances, reflected in $44 million in reported foreign exchange losses for the quarter, contributed to lower net earnings and adjusted net earnings compared to the same period in 2022.
The company held higher-than-normal US dollar cash balances for its pending acquisition of Westinghouse, it noted.
“Our financial performance, which reflects the expected quarterly variation in our contract deliveries this year, is benefitting from our strategic decisions, with gross profit improving as we transition to our tier-one run rate,” Cameco CEO Tim Gitzel said in a statement.
“The significant momentum seen in the nuclear energy industry and the heightened supply risk caused by geopolitical developments are translating into increased opportunities for Cameco.”
The company said it was raising its 2023 revenue outlook to between $2.4 billion and $2.5 billion, up from its previous range of $2.2 billion and $2.4 billion, primarily driven by higher expected average realized prices under its contract portfolio and increased deliveries in the uranium segment.
But the company's positive outlook did not outweigh the profit miss in investors’ eyes, with Cameco shares down 7.8% at US$31.84 shortly before noon on Wednesday.
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