Coeur d'Alene Earnings: An Early Look

Earnings season is now starting to wind down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Coeur d'Alene Mines (NYSE: CDE  ) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

After a long bull market, silver prices have taken a pause over the past 12 months, with the iShares Silver ETF (NYSEMKT: SLV  ) having fallen more than 10% since this time last year. Moreover, silver miners like Coeur d'Alene have faced some additional headwinds that have challenged their profit-making potential. Let's take an early look at what's been happening with Coeur d'Alene over the past quarter and what we're likely to see in its quarterly report on Thursday.

Stats on Coeur d'Alene

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$230 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Coeur d'Alene connect with profits?
Analysts have been extremely pessimistic about Coeur d'Alene's profit potential, cutting their earnings estimates on the miner by more than half over the past three months, and reducing their full-year 2013 estimates by $0.65 per share. The stock has also run into resistance, falling about 8% since mid-November.

Coeur d'Alene is trying to rebound from a tough report last quarter. Because of a 2009 royalty agreement with Franco-Nevada (NYSE: FNV  ) covering half of its Palmarejo mine's gold production, Coeur has suffered from rising gold prices, having to take substantial impairments to earnings.

To do so, Coeur d'Alene has turned to acquisitions. In December, the company paid $60 million in cash and stock to buy out its joint-venture partner, Mirasol Resources, to take full possession of the Joaquin silver and gold project in Argentina.

More recently, Coeur d'Alene has made a bid to buy out Orko Silver, topping First Majestic Silver's (NYSE: AG  ) bid with a $383.3 million offer. The move would give the winner the rights to Orko's La Preciosa silver mine in Mexico. Coeur d'Alene faces an uphill battle, though, because First Majestic already has assets in the same area as La Preciosa and also has the benefit of getting a breakup fee if Coeur d'Alene ends up winning a bidding war.

In Coeur d'Alene's report, look for more information about the Orko bid and what direction the company plans to take after a potential acquisition. Without better strategic direction, Coeur d'Alene will have a hard time reversing its lackluster performance.

Put more gold in your portfolio
Looking for more commodities-based ideas? Download our free report, "The Tiny Gold Stock Digging Up Massive Profits." The Motley Fool's analysts have uncovered a little-known gold miner they believe is poised for greatness; find out which company it is and why its future looks bright -- for free!

Click here to add Coeur d'Alene to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (0)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2263642, ~/Articles/ArticleHandler.aspx, 9/30/2016 9:43:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 27 minutes ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:01 PM
CDE $11.83 Down +0.00 +0.00%
Coeur Mining CAPS Rating: **
AG $10.30 Down -0.18 -1.72%
First Majestic Sil… CAPS Rating: **
FNV $69.87 Down -0.92 -1.30%
Franco Nev CAPS Rating: **
SLV $18.20 Up +0.09 +0.50%
iShares Silver Tru… CAPS Rating: ***