Cameco Stock Drops Despite Strong Earnings Beat

Shares of Cameco (CCJ) fell 3.8% in midday trading Thursday, defying expectations after the uranium miner reported Q2 earnings that crushed analyst forecasts. The Canadian firm posted C$0.71 per share in profits—a fivefold increase year-over-year—on C$877 million revenue, far exceeding the predicted C$0.52.

CEO Tim Gitzel highlighted resilience across uranium operations and fuel services, with rising average prices driving both top-line growth and margin expansion. Maintenance costs at the Key Lake mill barely dented the 47% revenue surge. Forward guidance appears equally bullish: management raised 2025 uranium price projections to C$87/lb and anticipates Westinghouse EBITDA could spike 43% above prior estimates.

Market skepticism persists despite these fundamentals. With analysts forecasting full-year EPS of $1.01 (USD), the disconnect between performance and valuation suggests either latent concerns about sustainability or broader sector headwinds weighing on sentiment.