Does the Street Have Yamana Gold Figured Out?

Yamana Gold (NYSE: AUY  ) is expected to report Q2 earnings on Aug. 8. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Yamana Gold's revenues will wane -1.8% and EPS will shrink -16.0%.

The average estimate for revenue is $562.7 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
Last quarter, Yamana Gold recorded revenue of $559.7 million. GAAP reported sales were 18% higher than the prior-year quarter's $476.1 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.25. GAAP EPS of $0.23 for Q1 were 15% higher than the prior-year quarter's $0.20 per share.

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

Recent performance
For the preceding quarter, gross margin was 65.7%, 130 basis points worse than the prior-year quarter. Operating margin was 41.3%, 50 basis points worse than the prior-year quarter. Net margin was 30.4%, 70 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $2.45 billion. The average EPS estimate is $1.09.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,705 members out of 3,841 rating the stock outperform, and 136 members rating it underperform. Among 655 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 622 give Yamana Gold a green thumbs-up, and 33 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 $21.05.

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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 the 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 don't 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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  • Report this Comment On August 06, 2012, at 4:08 AM, lanceim59 wrote:

    If anyone is into small-cap high growth mining stocks, you should look into Woulfe Mining (TSX-V symbol: WOF or OTCQX symbol: WFEMF). Back in February 2012, Warren Buffet invested $80 million in Woulfe Mining which is one of the largest tungsten producers in the world! Tungsten is one of the hardest metals and is used for the tips of mining drills as well as jewelry. Woulfe Mining is projected to start production in the Sanddong Mine(one of the largest tungsten mine in the world) some time in 2013.

    http://www.moneymorning.com.au/20120613/why-warren-buffett-i...

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