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Goldcorp Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 7, 2017 at 12:11PM

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Just the facts, Fool.

Goldcorp (NYSE: GG) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Goldcorp beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins shrank, operating margins dropped, net margins expanded.

Revenue details
Goldcorp booked revenue of $1.54 billion. The eight analysts polled by S&P Capital IQ expected sales of $1.39 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $1.31 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 $0.54. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.61 for Q3 were 49% higher than the prior-year quarter's $0.41 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 58.0%, 680 basis points worse than the prior-year quarter. Operating margin was 40.8%, 500 basis points worse than the prior-year quarter. Net margin was 32.4%, 670 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $5.39 billion. The average EPS estimate is $1.92.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,157 members out of 2,302 rating the stock outperform, and 145 members rating it underperform. Among 467 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 431 give Goldcorp a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Goldcorp is outperform, with an average price target of $51.26.

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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. 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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