Scotiabank Lowers Earnings Estimates for HudBay Minerals

Key Points

• Scotiabank cut HudBay Minerals’ FY2027 EPS estimate to $1.97 from $2.01, while maintaining an “Outperform” rating. Analysts overall hold a “Moderate Buy” consensus, with an average price target of $31.33.
• HudBay’s latest quarterly results exceeded expectations, with EPS of $0.28 versus the $0.26 consensus estimate and revenue of $631.3 million. Revenue increased 17.7% year over year.
• The stock traded around $27.21, near its 50-day moving average, and institutional investors own 57.82% of shares. The company also paid a quarterly dividend of C$0.01 per share, representing a 0.1% yield.

HudBay Minerals Inc (NYSE:HBM - Free Report) TSE: HBM - Scotiabank decreased their FY2027 earnings per share estimates for HudBay Minerals in a report released on Thursday, October 1st. Scotiabank analyst O. Wowkodaw now anticipates that the mining company will post earnings per share of $1.97 for the year, down from their prior estimate of $2.01. Scotiabank currently has a "Outperform" rating on the stock. The consensus estimate for HudBay Minerals' current full-year earnings is $1.42 per share.

Several other brokerages also recently weighed in on HBM. Jefferies Financial Group restated a "buy" rating on shares of HudBay Minerals in a research note on Monday, July 6th. Barclays boosted their price objective on shares of HudBay Minerals from $30.00 to $32.00 and gave the stock an "overweight" rating in a report on Wednesday, July 15th. Citigroup reissued a "positive" rating on shares of HudBay Minerals in a research report on Wednesday, July 15th. Wall Street Zen downgraded HudBay Minerals from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Bank of America dropped their target price on HudBay Minerals from $33.50 to $29.50 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Ten equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $31.33.

HudBay Minerals Trading Up 0.1%

HBM opened at $27.21 on Monday. The firm has a market capitalization of $12.09 billion, a P/E ratio of 16.01, a P/E/G ratio of 0.46 and a beta of 1.58. The firm's 50 day moving average is $26.80 and its 200-day moving average is $24.97. HudBay Minerals has a 52-week low of $14.34 and a 52-week high of $32.15. The company has a quick ratio of 1.93, a current ratio of 2.24 and a debt-to-equity ratio of 0.17.

HudBay Minerals (NYSE:HBM - Get Free Report) TSE: HBM last released its quarterly earnings results on Wednesday, July 29th. The mining company reported $0.28 EPS for the quarter, topping the consensus estimate of $0.26 by $0.02. HudBay Minerals had a return on equity of 9.47% and a net margin of 27.48%.The firm had revenue of $631.30 million for the quarter, compared to analyst estimates of $632.43 million. During the same period in the previous year, the company posted $0.19 EPS. HudBay Minerals's revenue for the quarter was up 17.7% on a year-over-year basis.

Institutional Investors Weigh In On HudBay Minerals

Institutional investors have recently modified their holdings of the stock. Rakuten Securities Inc. acquired a new position in HudBay Minerals in the second quarter worth about $28,000. Bullseye Investment Management LLC bought a new position in HudBay Minerals during the 2nd quarter worth approximately $30,000. Fiduciary Financial Advisors acquired a new position in shares of HudBay Minerals in the 2nd quarter worth approximately $32,000. Integrated Wealth Concepts LLC acquired a new position in shares of HudBay Minerals in the 2nd quarter worth approximately $36,000. Finally, EFG International AG bought a new stake in shares of HudBay Minerals in the 2nd quarter valued at approximately $38,000. Institutional investors and hedge funds own 57.82% of the company's stock.

HudBay Minerals Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Tuesday, September 8th were issued a dividend of C$0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend was Tuesday, September 8th. HudBay Minerals's dividend payout ratio (DPR) is currently 1.76%.

About HudBay Minerals

Hudbay Minerals Inc is a Canadian mining company focused primarily on the exploration, development, and operation of copper, zinc, gold, silver, and molybdenum deposits. The company's products are used in infrastructure, manufacturing, technology, and energy-related applications. Hudbay is listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol HBM.

Hudbay operates mining and processing assets in Canada and Peru. Its Manitoba operations include the Lalor polymetallic mine and processing facilities in the Snow Lake region, which produce zinc, copper, gold, and silver.

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