Energy Fuels Inc. UUUU is anticipated to report a loss when it reports third-quarter 2021 results later this week.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $10.5 million, indicating growth of 2,049% from the prior-year quarter. The consensus mark for earnings stands at a loss of 3 cents per share, compared with a loss of 8 cents per share in the year-ago quarter. The estimates have remained stable over the past 30 days.

Q2 Results

In the last reported quarter, Energy Fuels reported revenues of $0.46 million, which improved 15% year over year but missed the Zacks Consensus Estimate. The company reported a second-quarter 2021 loss per share of 7 cents, wider than the Zacks Consensus Estimate of a loss per share of 4 cents. The uranium mining company had reported a loss of 8 cents in the second quarter of 2020.

The company has a trailing four-quarter negative earnings surprise of 43.7%, on average.

Energy Fuels Inc Price and EPS Surprise

Energy Fuels Inc price-eps-surprise | Energy Fuels Inc Quote

Factors to Note

Energy Fuels has strategically opted not to enter into any uranium sales commitments in 2021. Consequently, its uranium production is expected to be added to existing inventories, which were anticipated to total around 691,000 pounds at 2021-end. The company intends to hold this inventory until prices for uranium go up significantly. It is also holding on to its vanadium until spot prices spike from current levels. It expects to sell finished vanadium products when justified to the metallurgical industry, and other markets that demand a higher-purity product, including the aerospace, chemical, and potentially the vanadium battery industries.

Meanwhile, the company has been pursuing new sources of revenues, including its emerging REE business, and new sources of alternate feed materials and alternative fee processing opportunities at the White Mesa Mill that can be processed under existing market conditions (i.e., without reliance on current uranium sales prices). It has also been seeking new sources of natural monazite sands for its emerging rare earth business, and continues to support the U.S. governmental activities to assist the U.S. uranium mining industry, including the proposed establishment of a U.S. Uranium Reserve.

In September, the company announced that approximately 15 containers of RE (rare earth) Carbonate (300 ton of product) produced at the White Mesa Mill are being shipped to Europe where it will be processed into separated rare earth oxides and other value-added RE compounds. This creates a new U.S. to Europe RE supply chain along with new opportunities and financial benefits. Energy Fuels is the first U.S. company to produce a marketable mixed REE concentrate ready for separation on a commercial scale.

Energy Fuel’s revenues for the quarter to be reported are likely to reflect fees for ore received from a third-party uranium mine. On Oct 6, 2020, 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 and thereby, might have favored margins in the third quarter. The company’s ongoing efforts to lower costs are likely to get reflected in the third-quarter 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 #3.

Price Performance

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Energy Fuel’s shares have soared 444.8% in the past year compared with the industry’s rally of 64.4%.

Stocks Poised to Beat Estimates

Here are some Basic Materials stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Teck Resources Ltd TECK has an Earnings ESP of +9.68% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin Corporation OLN, a Zacks #1 Ranked stock, has an Earnings ESP of +5.79%.

Celanese Corporation CE has a Zacks Rank #2 and an Earnings ESP of +3.14%, at present.

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Energy Fuels Inc (UUUU) : Free Stock Analysis Report

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Teck Resources Ltd (TECK) : Free Stock Analysis Report

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