- Uranium Energy (UEC) reported an unexpected EPS of minus 5 cents per share for Q3 2024, missing the anticipated 1 cent per share, leading to a decline in stock price.
- Despite no revenue and gross profit for the quarter, UEC’s cash and cash equivalents nearly doubled, and the company saw increases in various assets, while total liabilities decreased.
- UEC experienced a 43% rise in operating costs, resulting in a $13.84 million loss, but remains confident in future growth with plans to restart uranium extraction at the Christensen Ranch Mine and sufficient cash resources for the next 12 months.
On June 10th, Uranium Energy (UEC) disappointed investors after releasing their third quarter results for the 2024 fiscal year. According to EPS estimates from rating agencies like Zacks Investment Research, analysts anticipated the company to report an EPS of 1 cent per share. However, the company surprisingly reported an EPS of minus 5 cents per share, resulting in a decline in the company’s stock price.
Revenues and Gross Profit:
The significant variance in Uranium Energy’s EPS estimates can be attributed to the reported total revenues for the quarter. According to Zacks Investment Research, analysts estimated revenues for the quarter to be around $20 million. However in their third quarter earnings report for this year, the company reported no total revenues since there was no purchase of uranium inventory during the time period. Since Uranium Energy reported no revenue and cost of goods sold, they also showed no total gross profit for the quarter.
Total Assets:
Cash and cash equivalents significantly increased from $45.6 million in July of 2023 to $95 million in April of 2024. Additionally, Uranium Energy also saw increases in inventories, prepaid expenses and deposits. As for non-current assets, the company reported increases in mineral properties, equity-accounted investments, and other investments in equity securities.
Total Liabilities:
Uranium Energy showed lower total liabilities on their balance sheet, with liabilities decreasing from $105.76 million in their 2023 third quarter to $99.62 million in their 2024 third quarter. The decline can be attributed to decreases in accounts payable, asset retirement obligations, and deferred tax liabilities.
Operating Costs and Activities:
Uranium Energy experienced a 43% increase in total operating costs from its 2023 third quarter results to its third quarter results in 2024. In its 2024 third quarter results, Uranium Energy reported a total loss of $13.84 million from its operating costs. The result can be explained by increases in mineral property expenditures, general and administrative costs, and depreciation costs. The company also reported a use of $93 million in net cash for operating activities related to changes in inventories, equity-accounted investments, and other activities.
While the results have left many investors and analysts disappointed, Uranium Energy stated that they are confident that the company will continue to grow in the future. Specifically, the company believes that its existing cash resources will provide sufficient funds to carry out operations for the following 12 months. In January, the company announced that it would restart uranium extraction at its Christensen Ranch Mine operation in Wyoming. With its existing cash balance, the UEC expects to fund its first extraction in August of this year to help push the company forward.