Newmont Mining Goes Negative

Newmont Mining (NYSE: NEM  ) reported earnings on July 26. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Newmont Mining logged revenue of $1.99 billion. The seven analysts polled by S&P Capital IQ expected to see a top line of $2.09 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $2.23 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 -$0.10. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. Non-GAAP EPS were -$0.10 for Q2 compared to $0.59 per share for the prior-year quarter. GAAP EPS were -$4.06 for Q2 versus $0.56 per share for the prior-year quarter.

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 17.1%, much worse than the prior-year quarter. Operating margin was -17.4%, much worse than the prior-year quarter. Net margin was -101.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.01 billion. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $8.33 billion. The average EPS estimate is $1.95.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,181 members out of 1,274 rating the stock outperform, and 93 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Newmont Mining a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newmont Mining is hold, with an average price target of $37.95.

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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 position in any of the stocks mentioned. 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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