5 Important Energy Stocks Making Moves After Earnings

2. Cameco Corporation (NYSE:CCJ)

Number of Hedge Fund Holders: 43

Cameco Corporation (NYSE:CCJ) just delivered solid profit and sales for the second quarter, helped by higher prices of uranium during the quarter. The strong results sent Cameco shares up more than seven percent in the early trading Wednesday, July 27, 2022.

The Canada-based uranium company earned C$0.18 per share on an adjusted basis, beating the expectations of C$0.01 per share. In addition, Cameco Corporation (NYSE:CCJ) posted revenue of C$558 million, while analysts were looking for C$383.11 million.

Separately, Cameco Corporation (NYSE:CCJ) appeared in the first-quarter 2022 investor letter of investment management firm Aristotle Capital. Here’s what the firm said:

“Cameco, the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”