Cameco says analyst estimates are too high and it expects to report a loss for 2016
Canadian Press | January 18, 2017: Shares of Cameco Corp. (TSX: CCO) fell more than 10% in early Wednesday trading after the Saskatoon-based uranium producer warned Tuesday that analyst estimates are too high and it expects to report a loss for 2016.
Cameco said the loss will reflect the reduced fair value of its assets because of a weak uranium market.
The company also said its adjusted net earnings would be significantly lower than analyst estimates.
Thomson Reuters data indicate analysts had estimated 86 cents per share of adjusted earnings and a net profit of 96 cents per share for the full year ended Dec. 31.
At 6:30 a.m. today, Cameco’s shares had fallen by $1.17 (U.S.) to $12.10 in overnight trading. The stock had recently shot up $2.52 from $10.75 per share on Jan. 9.
Cameco’s shares closed at $13.27 on Tuesday at the New York Stock Exchange and at $17.32 (Canadian) in Toronto.
The company also announced Tuesday that it expects to lay off 120 employees in stages as part of its plans to further reduce costs and improve efficiency at its struggling uranium mining operations. It expects to complete the layoffs by the end of May.
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