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Newmont Mining Beats Analyst Estimates on EPS

By Seth Jayson – Updated Apr 10, 2017 at 2:22PM

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Just the facts, Fool.

Newmont Mining (NYSE: NEM) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Newmont Mining missed estimates on revenues and beat expectations on earnings per share.

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

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

Revenue details
Newmont Mining notched revenue of $2.48 billion. The seven analysts polled by S&P Capital IQ wanted to see sales of $2.64 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $2.77 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 $1.11. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.97 per share. Non-GAAP EPS of $1.11 for Q4 were 5.1% lower than the prior-year quarter's $1.17 per share. GAAP EPS were $1.36 for Q4 versus -$2.08 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 56.3%, 400 basis points worse than the prior-year quarter. Operating margin was 26.1%, much worse than the prior-year quarter. Net margin was 27.2%, much better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.55 billion. On the bottom line, the average EPS estimate is $1.04.

Next year's average estimate for revenue is $10.67 billion. The average EPS estimate is $4.45.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,158 members out of 1,248 rating the stock outperform, and 90 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 209 give Newmont Mining a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newmont Mining is outperform, with an average price target of $60.67.

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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. 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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Stocks Mentioned

Newmont Corporation Stock Quote
Newmont Corporation
NEM
$45.85 (-0.86%) $0.40

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