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Why Is Newmont (NEM) Down 3.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Newmont Corporation (NEM - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Newmont due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Newmont’s Earnings and Revenues Lag Estimates in Q2
Newmont reported net income from continuing operations of $379 million or 48 cents per share in second-quarter 2022, down from $640 million or 80 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings were 46 cents per share that missed the Zacks Consensus Estimate of 60cents.
Newmont reported revenues of $3,058 million, almost flat year over year. The figure missed the Zacks Consensus Estimate by 0.5%. Higher average realized gold prices and copper sales volume were partly offset by reduced average realized co-product metal prices.
Operational Highlights
Newmont's attributable gold production in the second quarter increased roughly 3.4% year over year to around1.5 million ounces in the quarter.
Average realized prices of gold rose 0.7% year over year to $1,836 per ounce.
The company’s CAS for gold were $932 per ounce, up 23.4% year over year. The increase was mainly driven by higher direct operating costs resulting from higher labor costs and increased commodity inputs, including higher fuel and energy costs.
AISC for gold were up 15.8% year over year to $1,199 per ounce, mainly due to higher CAS per gold equivalent ounce.
Regional Performance
North America: Second-quarter attributable gold production in North America was 316,000 ounces, down 20% year over year. Gold CAS in the region was $1,124 per ounce, up 46% year over year.
South America: Attributable gold production in South America was 210,000 ounces, up 11% year over year. Gold CAS in the region rose 36% on a year-over-year basis to $982 per ounce.
Australia: Attributable gold in the region was 366,000 ounces, up 22% year over year. Gold CAS in the region was down 7% year over year to $710 per ounce.
Africa: Production in the region totaled 243,000 ounces of gold in the quarter, up 20% year over year. Gold CAS was $838 per ounce, up 10% year over year.
Nevada: Production totaled 290,000 ounces of gold in the quarter, up 2% year over year. Gold CAS was $1,035 per ounce, up 37% year over year.
Financial Position
The company ended the quarter with cash and cash equivalents of $4,307 million, down 6% year over year. At the end of the quarter, the company had long-term debt of $5,568 million, up 11.6% year over year.
Net cash from continuing operations amounted to $1,033 million. Free cash flow totaled $514 million in the second quarter.
Outlook
For 2022, Newmont expects attributable gold production of 6 million ounces. The company also expects gold CAS to be $900 per ounce and AISC to be $1,150 per ounce.
Newmont’s cost guidance reflects the impact of lower production volumes and higher direct operating costs related to labor, energy, consumables and supplies due to sustained inflationary pressures.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -6.25% due to these changes.
VGM Scores
At this time, Newmont has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Newmont has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Newmont is part of the Zacks Mining - Miscellaneous industry. Over the past month, Cleveland-Cliffs (CLF - Free Report) , a stock from the same industry, has gained 9.4%. The company reported its results for the quarter ended June 2022 more than a month ago.
Cleveland-Cliffs reported revenues of $6.34 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $1.31 for the same period compares with $1.46 a year ago.
Cleveland-Cliffs is expected to post earnings of $1.02 per share for the current quarter, representing a year-over-year change of -56.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -29.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Cleveland-Cliffs. Also, the stock has a VGM Score of A.
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Why Is Newmont (NEM) Down 3.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Newmont Corporation (NEM - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Newmont due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Newmont’s Earnings and Revenues Lag Estimates in Q2
Newmont reported net income from continuing operations of $379 million or 48 cents per share in second-quarter 2022, down from $640 million or 80 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings were 46 cents per share that missed the Zacks Consensus Estimate of 60cents.
Newmont reported revenues of $3,058 million, almost flat year over year. The figure missed the Zacks Consensus Estimate by 0.5%. Higher average realized gold prices and copper sales volume were partly offset by reduced average realized co-product metal prices.
Operational Highlights
Newmont's attributable gold production in the second quarter increased roughly 3.4% year over year to around1.5 million ounces in the quarter.
Average realized prices of gold rose 0.7% year over year to $1,836 per ounce.
The company’s CAS for gold were $932 per ounce, up 23.4% year over year. The increase was mainly driven by higher direct operating costs resulting from higher labor costs and increased commodity inputs, including higher fuel and energy costs.
AISC for gold were up 15.8% year over year to $1,199 per ounce, mainly due to higher CAS per gold equivalent ounce.
Regional Performance
North America: Second-quarter attributable gold production in North America was 316,000 ounces, down 20% year over year. Gold CAS in the region was $1,124 per ounce, up 46% year over year.
South America: Attributable gold production in South America was 210,000 ounces, up 11% year over year. Gold CAS in the region rose 36% on a year-over-year basis to $982 per ounce.
Australia: Attributable gold in the region was 366,000 ounces, up 22% year over year. Gold CAS in the region was down 7% year over year to $710 per ounce.
Africa: Production in the region totaled 243,000 ounces of gold in the quarter, up 20% year over year. Gold CAS was $838 per ounce, up 10% year over year.
Nevada: Production totaled 290,000 ounces of gold in the quarter, up 2% year over year. Gold CAS was $1,035 per ounce, up 37% year over year.
Financial Position
The company ended the quarter with cash and cash equivalents of $4,307 million, down 6% year over year. At the end of the quarter, the company had long-term debt of $5,568 million, up 11.6% year over year.
Net cash from continuing operations amounted to $1,033 million. Free cash flow totaled $514 million in the second quarter.
Outlook
For 2022, Newmont expects attributable gold production of 6 million ounces. The company also expects gold CAS to be $900 per ounce and AISC to be $1,150 per ounce.
Newmont’s cost guidance reflects the impact of lower production volumes and higher direct operating costs related to labor, energy, consumables and supplies due to sustained inflationary pressures.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -6.25% due to these changes.
VGM Scores
At this time, Newmont has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Newmont has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Newmont is part of the Zacks Mining - Miscellaneous industry. Over the past month, Cleveland-Cliffs (CLF - Free Report) , a stock from the same industry, has gained 9.4%. The company reported its results for the quarter ended June 2022 more than a month ago.
Cleveland-Cliffs reported revenues of $6.34 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $1.31 for the same period compares with $1.46 a year ago.
Cleveland-Cliffs is expected to post earnings of $1.02 per share for the current quarter, representing a year-over-year change of -56.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -29.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Cleveland-Cliffs. Also, the stock has a VGM Score of A.