Cameco's earnings miss tied to Westinghouse stake ahead of potential IPO

The Motley Fool··CAUS·Read original
3▲0 ▼1Impact / 5
Summary · why it matters

Cameco reported second-quarter adjusted earnings per share of CA$0.18, missing the analyst consensus of CA$0.36, while revenue fell 7%. The miss was almost entirely due to a CA$10 million loss from its 49% stake in Westinghouse Electric, which it co-owns with Brookfield Renewable, compared with CA$126 million in equity earnings a year earlier. Westinghouse's earnings were lower because of lumpiness in its business, but its value has risen to an estimated CA$10.8 billion, according to Desjardins Securities, and its owners are preparing an IPO that could unlock significant value for Cameco.

Impact on assets 4

Energy Transition & Power Demand▼
Cameco Corp
CCJ
▼ NegativeCapitalrelevance

Earnings miss due to Westinghouse loss, but potential IPO upside.

Utilities▲
Artificial Intelligence▲

Off-coverage companies 2

Desjardins Capital Marketsi
Private± Mixedrelevance

Westinghouse Electric Companyi
Private± Mixedrelevance