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Yamana Gold Goes Red

By Seth Jayson – Updated Apr 10, 2017 at 6:27AM

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Just the facts, Fool.

Yamana Gold (NYSE: AUY) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Yamana Gold whiffed on revenues and missed estimates on earnings per share.

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

Margins shrank across the board.

Revenue details
Yamana Gold booked revenue of $430.5 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $486.2 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $535.7 million.

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 details
EPS came in at $0.07. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. Non-GAAP EPS of $0.07 for Q2 were 17% higher than the prior-year quarter's $0.06 per share. GAAP EPS were -$0.01 for Q2 against $0.06 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.

Margin details
For the quarter, gross margin was 49.5%, much worse than the prior-year quarter. Operating margin was 12.1%, much worse than the prior-year quarter. Net margin was -1.8%, 980 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $553.7 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $2.19 billion. The average EPS estimate is $0.53.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,693 members out of 3,835 rating the stock outperform, and 142 members rating it underperform. Among 462 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 424 give Yamana Gold a green thumbs-up, and 38 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yamana Gold is outperform, with an average price target of $16.02.

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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. 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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