Post-Earnings Briefing - Cameco

LONDON, November 18, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings briefing on Cameco Corp. (NYSE: CCJ). On October 29, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Cameco Corp. During Q3 FY14, the company's revenue declined 2% on a Y-o-Y basis. Tim Gitzel, President and CEO of Cameco, stated that the company's Q3 FY14 results reflect the ongoing challenges that the industry is facing. He added that the company, nonetheless, continues to show that it is up for the near-term challenge, as it prepares for the increased demand coming over the long term. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Cameco's Q3 FY14 revenues declined to CDN$587 million from CDN$597 million in Q3 FY13. The company's reported quarterly revenues fell short of Bloomberg analysts' forecasts of CDN$609 million. Cameco's revenue from its uranium segment declined to CDN$447 million in Q3 FY14 from CDN$449 million in Q3 FY13, and its fuel services segment (including UF₆, UO₂  and fuel fabrication) revenues fell 8% Y-o-Y to CDN$71 million. Meanwhile, the company's revenues from its NUKEM segment increased 4% Y-o-Y to CDN$97 million in Q3 FY14.

During Q3 FY14, the company reported net loss of CDN$146 million compared to earnings of CDN$211 million in Q3 FY13. On a per share basis, Cameco's net loss stood at CDN$0.37 per diluted share compared to net earnings of CDN$0.53 per diluted share in Q3 FY13. Analysts from Bloomberg were expecting the company to report net income of CDN$94 million, or CDN$0.19 per share. The company's net losses were affected by the impairment of its investment in GE-Hitachi Global Laser Enrichment (GLE) of CDN$184 million, the impairment of its investment in GoviEx Uranium Inc. (GoviEx) of CDN$12 million, and mark-to-market losses on foreign exchange derivatives compared to gains in FY13. The free research on CCJ can be downloaded as in PDF format at:

www.Investor-Edge.com/CCJFreeReport

On an adjusted basis, Cameco's net earnings for the reported quarter narrowed to CDN$93 million, or CDN$0.23 per diluted common share, from CDN$208 million, or CDN$0.53 per diluted common share, in Q3 FY13. The decline in net earnings is primarily attributable to lower earnings from the company's uranium segment based on a higher cost of sales and lower Canadian and US dollar average realized price, no earnings from BPLP (Bruce Power Limited Partnership) due to the divestiture of its interest in Q1 FY14, partially offset by tax recoveries due to pre-tax losses in Canada.

For FY14, Cameco is projecting uranium production in the range of 22.6 to 22.8 million lbs and fuel services production in the range of 11 to 12 million kgU. Further, the company is expecting flat to negative 5% growth in consolidated revenues compared to FY13. Cameco also projects capital expenditure of CDN$490 million in FY14. Sign up and read the free analyst's notes on CCJ at:

www.Investor-Edge.com/CCJ-18112014

Stock Performance  

On the day of the earnings release, October 29, 2014, Cameco Corp.'s stock ended the session at $16.91, down 3.37%. Although the stock has moved both up and down since then, the gains have outweighed the losses so far. On the last close, Monday, November 17, 2014, the stock finished at $19.00, up 0.53%, after vacillating between $18.77 and $19.28. A total of 2.89 million shares were traded, which was above its three months average volume of 1.93 million shares. Over the last one month, the company's shares have gained 15.22%. However, the stock has lost 7.59% over the previous three months and 8.52% since from the beginning of 2014. Shares in Cameco closed above their 50-day moving average of $17.64. Furthermore, the stock has a Relative Strength Index (RSI) of 59.23. Visit Investor-Edge and access the latest research on CCJ at:

www.Investor-Edge.com/CCJEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month Cameco Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on CCJ is available at:

www.Investor-Edge.com/CCJInsiderTrading

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