We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Newmont (NEM) This Earnings Season?
Read MoreHide Full Article
Gold miner Newmont Mining Corporation (NEM - Free Report) is scheduled to report first-quarter 2018 results before the opening bell on Apr 26.
In the last reported quarter, the company delivered adjusted earnings of 40 cents per share, which came in line with the Zacks Consensus Estimate. Notably, Newmont has surpassed expectations in three of the trailing four quarters with an average positive surprise of 21.5%.
Moreover, revenues for the fourth quarter went up around 8.2% year over year to $1,935 million, but trailed the Zacks Consensus Estimate of $1,957.6 million.
Can the company surprise investors this quarter or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
Newmont expects attributable gold production in the range of 4.9-5.4 million ounces for 2018, primarily driven by factors including full potential mine plan, recovery and throughput improvements. Newmont's attributable gold production increased roughly 1% year over year to 1.34 million ounces in the fourth quarter on the back of a full quarter of production at Long Canyon, higher throughput and grade at Merian and Tanami, which offset lower grade at Boddington, harder ore at Akyem and lower grade and recovery at CC&V.
The company’s all-in sustaining costs (AISC) guidance for 2018 is between $965 and $1,025 per ounce, as increases in exploration and advanced projects spending is offset by improved cost applicable to sales (CAS).
Total revenues for the first quarter are projected to decrease roughly 4.5% sequentially, as the Zacks Consensus Estimate for the quarter is currently pegged at $1,847 million. Notably, the projected figure marks a 11.3% year-over-year increase from $1,659 million recorded a year ago.
Strong production performance (driven by sustained project investments) in the company’s Americas operations is expected to continue in the first quarter. In the fourth quarter of 2017, North America’s attributable gold production rose 1% year over year while gold CAS remained almost flat at $720 per ounce. The company expects North American operations to produce 2.0-2.2 million ounces for 2018.
Attributable gold production in South America went up 13% year over year in the last reported quarter while gold CAS fell 9% to $577 per ounce. The company expects the region to produce 615,000-675,000 ounces this year on the back of mill productivity improvements, which partly offsets recoveries from deep transitional ore and Yanacocha’s lower production resulting from lower grades.
Attributable gold and copper production in the Australia went up around 3% year over year in the fourth quarter. Newmont expects Australia production between 1.5 and 1.7 million ounces in 2018 as higher grade, recovery and throughput improvements at Tanami and KCGM are likely to offset increased stripping at Boddington.
Attributable gold production from Africa went down by down 9% year over year in the fourth quarter and CAS decreased 2% to $755 per ounce. The company expects Africa production between 815,000 and 875,000 ounces this year.
Newmont is making notable progress with its growth projects as it continues to invest in growth projects in a calculated manner, including Subika Underground and Ahafo mill expansion in Africa and Twin Underground in North America.
In fourth-quarter 2017, Newmont successfully started commercial production at its Tanami expansion project in Australia, which is expected to improve gold production at the mine. Moreover, the Long Canyon mine in Nevada and Merian gold mine in Suriname have also reached commercial production.
However, Newmont faces headwinds from high production costs in 2018. The company’s projected AISC for 2018 is higher than $924 recorded for full-year 2017. Newmont’s AISC rose 5% year over year to $968 in the fourth quarter, mainly due to higher per unit CAS, higher exploration costs and increased sustaining capital. Increased project spending is expected to keep AISC at elevated levels.
Shares of Newmont have lost 0.5% in the past three months, outperforming the 9.5% decline recorded by its industry.
Earnings Whispers
Our proven model does not conclusively show that Newmont is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Newmont for the first quarter is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are both currently pegged at 33 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Newmont currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
FMC Corporation (FMC - Free Report) has an Earnings ESP of +1.43% and carries a Zacks Rank #2.
AK Steel Holding Corporation has an Earnings ESP of +22.50% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
What's in the Cards for Newmont (NEM) This Earnings Season?
Gold miner Newmont Mining Corporation (NEM - Free Report) is scheduled to report first-quarter 2018 results before the opening bell on Apr 26.
In the last reported quarter, the company delivered adjusted earnings of 40 cents per share, which came in line with the Zacks Consensus Estimate. Notably, Newmont has surpassed expectations in three of the trailing four quarters with an average positive surprise of 21.5%.
Moreover, revenues for the fourth quarter went up around 8.2% year over year to $1,935 million, but trailed the Zacks Consensus Estimate of $1,957.6 million.
Can the company surprise investors this quarter or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
Newmont Mining Corporation Price and EPS Surprise
Newmont Mining Corporation Price and EPS Surprise | Newmont Mining Corporation Quote
Factors to Consider
Newmont expects attributable gold production in the range of 4.9-5.4 million ounces for 2018, primarily driven by factors including full potential mine plan, recovery and throughput improvements. Newmont's attributable gold production increased roughly 1% year over year to 1.34 million ounces in the fourth quarter on the back of a full quarter of production at Long Canyon, higher throughput and grade at Merian and Tanami, which offset lower grade at Boddington, harder ore at Akyem and lower grade and recovery at CC&V.
The company’s all-in sustaining costs (AISC) guidance for 2018 is between $965 and $1,025 per ounce, as increases in exploration and advanced projects spending is offset by improved cost applicable to sales (CAS).
Total revenues for the first quarter are projected to decrease roughly 4.5% sequentially, as the Zacks Consensus Estimate for the quarter is currently pegged at $1,847 million. Notably, the projected figure marks a 11.3% year-over-year increase from $1,659 million recorded a year ago.
Strong production performance (driven by sustained project investments) in the company’s Americas operations is expected to continue in the first quarter. In the fourth quarter of 2017, North America’s attributable gold production rose 1% year over year while gold CAS remained almost flat at $720 per ounce. The company expects North American operations to produce 2.0-2.2 million ounces for 2018.
Attributable gold production in South America went up 13% year over year in the last reported quarter while gold CAS fell 9% to $577 per ounce. The company expects the region to produce 615,000-675,000 ounces this year on the back of mill productivity improvements, which partly offsets recoveries from deep transitional ore and Yanacocha’s lower production resulting from lower grades.
Attributable gold and copper production in the Australia went up around 3% year over year in the fourth quarter. Newmont expects Australia production between 1.5 and 1.7 million ounces in 2018 as higher grade, recovery and throughput improvements at Tanami and KCGM are likely to offset increased stripping at Boddington.
Attributable gold production from Africa went down by down 9% year over year in the fourth quarter and CAS decreased 2% to $755 per ounce. The company expects Africa production between 815,000 and 875,000 ounces this year.
Newmont is making notable progress with its growth projects as it continues to invest in growth projects in a calculated manner, including Subika Underground and Ahafo mill expansion in Africa and Twin Underground in North America.
In fourth-quarter 2017, Newmont successfully started commercial production at its Tanami expansion project in Australia, which is expected to improve gold production at the mine. Moreover, the Long Canyon mine in Nevada and Merian gold mine in Suriname have also reached commercial production.
However, Newmont faces headwinds from high production costs in 2018. The company’s projected AISC for 2018 is higher than $924 recorded for full-year 2017. Newmont’s AISC rose 5% year over year to $968 in the fourth quarter, mainly due to higher per unit CAS, higher exploration costs and increased sustaining capital. Increased project spending is expected to keep AISC at elevated levels.
Shares of Newmont have lost 0.5% in the past three months, outperforming the 9.5% decline recorded by its industry.
Earnings Whispers
Our proven model does not conclusively show that Newmont is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Zacks ESP : Earnings ESP for Newmont for the first quarter is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are both currently pegged at 33 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Newmont currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Allegheny Technologies Incorporated (ATI - Free Report) has an Earnings ESP of +5.63% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corporation (FMC - Free Report) has an Earnings ESP of +1.43% and carries a Zacks Rank #2.
AK Steel Holding Corporation has an Earnings ESP of +22.50% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>