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Newmont Mining Goes Negative

By Seth Jayson – Updated Apr 10, 2017 at 12:37PM

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Just the facts, Fool.

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. 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.

Stocks Mentioned

Newmont Corporation Stock Quote
Newmont Corporation
NEM
$47.47 (-2.47%) $-1.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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