The 10-second takeaway
For the quarter ended June 30 (Q2), Kinross Gold beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Kinross Gold notched revenue of $968.0 million. The six analysts polled by S&P Capital IQ predicted revenue of $928.6 million on the same basis. GAAP reported sales were 3.8% lower than the prior-year quarter's $1.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.10. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. Non-GAAP EPS of $0.10 for Q2 were 29% lower than the prior-year quarter's $0.14 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.) GAAP EPS were -$2.81 for Q2 compared to $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 47.0%, 680 basis points worse than the prior-year quarter. Operating margin was 15.4%, 990 basis points worse than the prior-year quarter. Net margin was -330.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $826.0 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $3.72 billion. The average EPS estimate is $0.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,376 members out of 1,437 rating the stock outperform, and 61 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Kinross Gold a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinross Gold is outperform, with an average price target of $7.45.
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