Cameco (CCO) revenue fell in the third quarter, and its loss widened from a year ago. The nuclear company expects supply constraints to reduce fuel service production for the year.
Cameco’s revenue for Q3 2021 came in at C$361 million, a decrease of 4.7% from the revenue of C$379 million reported in Q3 2020.
The company reported a net loss of C$72 million (C$0.18 per share), compared to a loss of C$61 million (C$0.15 per share) in Q3 2020.
On an adjusted basis, the company lost C$54 million (C$0.14 per share), compared to an adjusted loss of C$78 million (C$0.20 per share) reported in the third quarter of 2020.
Analysts polled by Investing.com were forecasting a loss of C$0.02 on revenue of C$338.3 million.
Cameco president and CEO Tim Gitzel said, “With McArthur River and Key Lake in care and maintenance, we are not at the regular tier-one run rate of our business. However, we are positioning to capture long-term value: to respond to the growing need for uranium to generate safe, clean, reliable, and affordable electricity.”
As of September 30, 2021, the company had C$1.4 billion in cash and short-term investments, and C$1 billion in long-term debt. (See Insiders’ Hot Stocks on TipRanks)
On October 20, TD Securities analyst Greg Barnes maintained a Buy rating on CCO with a C$40 price target. This implies 27.2% upside potential.
Overall, CCO scores a Moderate Buy consensus rating among analysts based on seven Buys, and three Holds. The average Cameco price target of C$34.32 implies 9.1% upside potential to current levels.
TipRanks’ Smart Score
CCO scores a 7 out of 10 on the TipRanks Smart Score rating system, indicating that the stock returns should be in line with the overall market.