Yamana Gold Beats on EPS, but GAAP Results Lag (AUY)

Yamana Gold Beats on EPS, but GAAP Results Lag

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

Yamana Gold (NYSE: AUY ) reported earnings on Feb. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Yamana Gold missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.

Gross margin increased, operating margin grew, and net margin dropped.

Revenue details
Yamana Gold booked revenue of $568.8 million. The five analysts polled by S&P Capital IQ predicted a top line of $612.8 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $535.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.25. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS of $0.12 for Q4 were 45% lower than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 68.6%, 190 basis points better than the prior-year quarter. Operating margin was 44.5%, 370 basis points better than the prior-year quarter. Net margin was 15.8%, 1,420 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $624.2 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $1.27.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,707 members out of 3,841 rating the stock outperform, and 134 members rating it underperform. Among 886 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 862 give Yamana Gold a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yamana Gold is outperform, with an average price target of $19.60.

Worried about inflation? Interested in gold? Find out the best way to profit in both scenarios a little-known company we profile in, "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.

Add Yamana Gold to My Watchlist.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.