Barrick Gold Whiffs on Earnings

Barrick Gold (NYSE: ABX  ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Barrick Gold missed estimates on revenues and whiffed on earnings per share.

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

Margins contracted across the board.

Revenue details
Barrick Gold chalked up revenue of $3.28 billion. The eight analysts polled by S&P Capital IQ hoped for net sales of $3.50 billion on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $3.43 billion.

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

EPS details
EPS came in at $0.78. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.95 per share. GAAP EPS of $0.75 for Q2 were 35% lower than the prior-year quarter's $1.16 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 44.2%, 1,210 basis points worse than the prior-year quarter. Operating margin was 35.4%, 1,720 basis points worse than the prior-year quarter. Net margin was 22.9%, 1,090 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.96 billion. On the bottom line, the average EPS estimate is $1.13.

Next year's average estimate for revenue is $15.25 billion. The average EPS estimate is $4.52.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,997 members out of 2,118 rating the stock outperform, and 121 members rating it underperform. Among 360 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 326 give Barrick Gold a green thumbs-up, and 34 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Barrick Gold is outperform, with an average price target of $58.53.

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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. The Motley Fool has no positions in the stocks mentioned above. 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.


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