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So, the Wheels Came Off Newmont Mining's Bus

By Seth Jayson – Updated Apr 10, 2017 at 1:34PM

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Just the facts, Fool.

Newmont Mining (NYSE: NEM) reported earnings on April 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Newmont Mining missed estimates on revenues and whiffed on earnings per share.

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

Margins shrank across the board.

Revenue details
Newmont Mining tallied revenue of $2.18 billion. The seven analysts polled by S&P Capital IQ expected sales of $2.27 billion on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $2.68 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 $0.71. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. Non-GAAP EPS of $0.71 for Q1 were 38% lower than the prior-year quarter's $1.15 per share. (The prior-year quarter included -$0.14 per share in earnings from discontinued operations.) GAAP EPS of $0.63 for Q1 were 35% lower than the prior-year quarter's $0.97 per share. (The prior-year quarter included -$0.14 per share in earnings from discontinued operations.)

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 51.2%, much worse than the prior-year quarter. Operating margin was 26.7%, much worse than the prior-year quarter. Net margin was 14.5%, 380 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.30 billion. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $9.51 billion. The average EPS estimate is $3.29.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,173 members out of 1,266 rating the stock outperform, and 93 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Newmont Mining a green thumbs-up, and 24 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 $52.54.

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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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