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Newmont (NEM) to Post Q1 Earnings: What's in the Offing?

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Newmont Corporation (NEM - Free Report) is scheduled to report first-quarter 2020 results on May 5, before the opening bell.

The company has a trailing four-quarter negative earnings surprise of 6.7%, on average. Its first-quarter results are likely to have benefited from increased gold prices.

Let’s see how things are shaping up for the upcoming announcement.

What to Expect in Q1

In March, Newmont stated that it expects to produce around 1.4 million attributable gold ounces and 325,000 co-product gold equivalent ounces for the first quarter. From the start of 2020 till Feb 29, it has produced roughly 981,000 attributable gold ounces and 227,000 co-product gold equivalent ounces.

Some Factors at Play

Among metals, gold has been the bright spot in the first quarter as mounting fears over the coronavirus pandemic made it the most attractive safe-haven asset. Also, slump in crude oil prices, a low interest rate environment and geopolitical tensions have boosted demand for gold. Concerns over supply crunch arising from suspensions of operations by miners per government mandates also contributed to gain in gold prices this year.

In early March, gold prices surged past the $1,700 an ounce level for the first time in seven years, courtesy of the pandemic and a sharp decline in oil prices triggered by Saudi Arabia's price war with Russia. As such, Newmont’s first-quarter results are expected to reflect the benefits from higher gold prices.
 
Q1 Estimates

The Zacks Consensus Estimate for first-quarter consolidated revenues is currently pegged at $2,683 million, which calls for a rise of 48.8% year over year.

Newmont Corporation Price and EPS Surprise

 

Newmont Corporation Price and EPS Surprise

Newmont Corporation price-eps-surprise | Newmont Corporation Quote

 

What Does the Zacks Model Say?

Our proven model doesn’t predict an earnings beat for Newmont this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Newmont is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 43 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 #2. 

Stocks Likely to Beat Estimates

Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this time around.

The Scotts Miracle-Gro Company (SMG - Free Report) , scheduled to release second-quarter fiscal 2020 earnings on May 6, has an Earnings ESP of +1.49% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wheaton Precious Metals Corp. (WPM - Free Report) , scheduled to release first-quarter 2020 results on May 6, has an Earnings ESP of +3.19% and carries a Zacks Rank #2.

Yamana Gold Inc. , slated to release first-quarter 2020 results on Apr 30, has an Earnings ESP of +7.14% and carries a Zacks Rank #3.

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