A month has gone by since the last earnings report for Goldcorp . Shares have lost about 13.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Goldcorp 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.
Goldcorp Misses Earnings and Revenue Estimates in Q2
Goldcorp incurred net loss of $131 million or 15 cents per share in second-quarter 2018, against net earnings of $135 million or 16 cents in the prior-year quarter.
Barring one-time items, adjusted earnings came in at 5 cents per share, which missed the Zacks Consensus Estimate of 7 cents.
Goldcorp recorded revenues of $793 million in the quarter, down roughly 3.5% year over year. The figure also missed the Zacks Consensus Estimate of $871.5 million.
Gold sales fell around 13.4% year over year to 562,000 ounces, while production declined 10.1% to 571,000 ounces.
AISC were $850 per gold ounce, down roughly 6.3% year over year.
Mining Highlights
At the Penasquito mine, gold production was 73,000 ounces, down 40.7% year over year from 123,000 ounces. AISC was $490 per ounce, up 49.4% from $328 in the year-ago quarter.
At the Cerro Negro in Argentina, gold production rose 15.2% to 129,000 ounces. AISC was $526 per ounce compared with $694 in the year-ago quarter.
At the Pueblo Viejo mine, gold production was 82,000 ounces, down from 115,000 ounces a year ago. AISC was $623 per ounce compared with $440 in the year-ago quarter.
Financial Position
Goldcorp’s cash and cash equivalents rose 47.5% year over year to $118 million. At the end of the second quarter, the company had net debt and adjusted net debt of $2.4 billion and $2.3 billion, respectively.
The company recorded operating cash flow of $158 million in the quarter under review.
Outlook
Goldcorp continues to expect gold production of 2.5 million ounces (+/- 5%) for 2018, unchanged from the previous guidance. AISC is projected at roughly $800 per ounce (+/- 5%), in line with the prior forecast. Goldcorp stated that it successfully executed its program of sustainable annual efficiencies worth $250 million. It has raised the target by another $100 million.
Goldcorp continues to expect sustaining capital expenditure to be $550 million for 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -45.53% due to these changes.
VGM Scores
Currently, Goldcorp has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Goldcorp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Goldcorp (GG) Down 13.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Goldcorp . Shares have lost about 13.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Goldcorp 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.
Goldcorp Misses Earnings and Revenue Estimates in Q2
Goldcorp incurred net loss of $131 million or 15 cents per share in second-quarter 2018, against net earnings of $135 million or 16 cents in the prior-year quarter.
Barring one-time items, adjusted earnings came in at 5 cents per share, which missed the Zacks Consensus Estimate of 7 cents.
Goldcorp recorded revenues of $793 million in the quarter, down roughly 3.5% year over year. The figure also missed the Zacks Consensus Estimate of $871.5 million.
Gold sales fell around 13.4% year over year to 562,000 ounces, while production declined 10.1% to 571,000 ounces.
AISC were $850 per gold ounce, down roughly 6.3% year over year.
Mining Highlights
At the Penasquito mine, gold production was 73,000 ounces, down 40.7% year over year from 123,000 ounces. AISC was $490 per ounce, up 49.4% from $328 in the year-ago quarter.
At the Cerro Negro in Argentina, gold production rose 15.2% to 129,000 ounces. AISC was $526 per ounce compared with $694 in the year-ago quarter.
At the Pueblo Viejo mine, gold production was 82,000 ounces, down from 115,000 ounces a year ago. AISC was $623 per ounce compared with $440 in the year-ago quarter.
Financial Position
Goldcorp’s cash and cash equivalents rose 47.5% year over year to $118 million. At the end of the second quarter, the company had net debt and adjusted net debt of $2.4 billion and $2.3 billion, respectively.
The company recorded operating cash flow of $158 million in the quarter under review.
Outlook
Goldcorp continues to expect gold production of 2.5 million ounces (+/- 5%) for 2018, unchanged from the previous guidance. AISC is projected at roughly $800 per ounce (+/- 5%), in line with the prior forecast. Goldcorp stated that it successfully executed its program of sustainable annual efficiencies worth $250 million. It has raised the target by another $100 million.
Goldcorp continues to expect sustaining capital expenditure to be $550 million for 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -45.53% due to these changes.
VGM Scores
Currently, Goldcorp has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Goldcorp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.