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Cameco Corp. beats estimates, BMO raises target on improve balance sheet

A drill is shown during a Cameco media tour of the uranium mine in Cigar Lake, Wednesday, September 23, 2015. THE CANADIAN PRESS/Liam Richards

SASKATOON — Cameco Corp. beat analyst expectations in its fourth quarter results as it continues to grapple with a challenging uranium market.

The company reported net earnings of $160 million for the quarter ending Dec. 31, compared with a loss of $62 million for the same quarter a year earlier.

Adjusted net earnings were $202 million, or 51 cents per share, compared with adjust earnings of $181 million or 46 cents per share for the same quarter in 2017.

The adjusted earnings were well ahead of analyst expectations of 23 cents per share for the quarter, according to Thomson Reuters Eikon.

The positive results helped prompt BMO to raise its target price on Monday for the company to $17.50 from $16.50.

BMO Capital Markets analyst Alexander Pearce says in a note that while cash flow will likely be lower in 2019, the company’s balance sheet and a rising uranium price should help drive results.

 

Companies in this story: (TSX:CCO)

The Canadian Press

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