The gold mining space remained in the red after mixed-to-downbeat earnings reports for the third quarter. Below we highlight Q3 earnings results of Newmont Mining Corp (NEM), Barrick Gold Corp and Goldcorp Inc. .
While NEM and GG hold a Zacks Rank #5 (Strong Sell), ABX has a Zacks Rank #4 (Sell). The stocks hail from a bottom-ranked Zacks industry (bottom 9%) and a bottom-ranked Zacks sector (bottom 13%).
Let’s dig a little deeper.
Newmont Q3 Earnings in Focus
Gold mining giant Newmont Mining Corporation logged a net loss from continuing operations of $161 million or 31 cents per share in third-quarter 2018, against net income of $213 million or 39 cents in the year-ago quarter. The bottom line was impacted by lower metal prices and the impairment of exploration and long-lived assets in North America, partly offset by lower income tax expenses. Without one-time items, adjusted earnings were 33 cents per share, which beat the Zacks Consensus Estimate of 22 cents.
Newmont reported revenues of $1,726 million, down around 8.1% year over year. The figure missed the Zacks Consensus Estimate of $1795.5 million. Newmont's attributable gold production fell roughly 4% year over year to 1.29 million ounces in the third quarter. The stock lost about 3.1% (as of Oct 29, 2018) since reporting earnings before market opens on Oct 25.
Goldcorp Q3 Earnings in Focus
Goldcorp recorded net loss of $101 million or 12 cents per share in third-quarter 2018, against net earnings of $111 million or 13 cents in the prior-year quarter. Barring one-time items, adjusted loss came in at 8 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 2 cents.
Goldcorp’s revenues of $621 million in the quarter were down roughly 28.3% year over year. The figure also missed the Zacks Consensus Estimate of $714.5 million. Gold sales fell around 19.3% year over year to 508,000 ounces, while production declining 20.5% to 503,000 ounces. All-in sustaining costs (AISC) were $999 per gold ounce, up roughly 20.8% year over year. The stock retreated about 14% since reporting earnings on Oct 24.
Barrick Gold Q3 Earnings in Focus
Barrick Gold Corp posted net loss (attributable to equity holders) of $412 million or 35 cents per share for third-quarter 2018, wider than net loss of $11 million or a penny per share a year ago.
Barring one-time items, adjusted net earnings came in at 8 cents per share, down from 17 cents a year ago. It, however, beat the Zacks Consensus Estimate of 6 cents. Lower realized prices of gold and copper along with higher direct mining costs weighed on adjusted net earnings.
Revenues fell roughly 7.8% year over year to $1,837 million in the quarter. Nevertheless, the figure beat the Zacks Consensus Estimate of $1,809.3 million. It has shed 3.3% (as of Oct 29, 2018) since reporting earnings on Oct 24 after market closes (read: Barrick Gold to Acquire Randgold: ETFs Set to Shine).
ETF Impact
The aforementioned companies have considerable exposure in large-cap funds like VanEck Vectors Gold Miners ETF (GDX - Free Report) , iShares MSCI Global Gold Miners ETF (RING - Free Report) , Invesco Global Gold & Precious Metals ETF and Sprott Gold Miners ETF (SGDM - Free Report) (see all Materials ETFs here).
In PSAU, NEM (7.54%), ABX (9.78%) and GG (5.29%) take the top three positions. RING invests more than 14% each in NEM and more than 13% in ABX, while GG takes 6.58%. In GDX also, NEM, ABX and GG take 10.41%, 9.39% and 4.95% share, respectively. SGDM puts about 14.01% in NEM, 12.23% in GG and 5.84% in ABX. PSAU, RING, GDX and SGDM has lost about 3.6%, 4.3%, 4.3% and 6% since Oct 24, 2018.
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The gold mining space remained in the red after mixed-to-downbeat earnings reports for the third quarter. Below we highlight Q3 earnings results of Newmont Mining Corp (NEM), Barrick Gold Corp and Goldcorp Inc. .
While NEM and GG hold a Zacks Rank #5 (Strong Sell), ABX has a Zacks Rank #4 (Sell). The stocks hail from a bottom-ranked Zacks industry (bottom 9%) and a bottom-ranked Zacks sector (bottom 13%).
Let’s dig a little deeper.
Newmont Q3 Earnings in Focus
Gold mining giant Newmont Mining Corporation logged a net loss from continuing operations of $161 million or 31 cents per share in third-quarter 2018, against net income of $213 million or 39 cents in the year-ago quarter. The bottom line was impacted by lower metal prices and the impairment of exploration and long-lived assets in North America, partly offset by lower income tax expenses. Without one-time items, adjusted earnings were 33 cents per share, which beat the Zacks Consensus Estimate of 22 cents.
Newmont reported revenues of $1,726 million, down around 8.1% year over year. The figure missed the Zacks Consensus Estimate of $1795.5 million. Newmont's attributable gold production fell roughly 4% year over year to 1.29 million ounces in the third quarter. The stock lost about 3.1% (as of Oct 29, 2018) since reporting earnings before market opens on Oct 25.
Goldcorp Q3 Earnings in Focus
Goldcorp recorded net loss of $101 million or 12 cents per share in third-quarter 2018, against net earnings of $111 million or 13 cents in the prior-year quarter. Barring one-time items, adjusted loss came in at 8 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 2 cents.
Goldcorp’s revenues of $621 million in the quarter were down roughly 28.3% year over year. The figure also missed the Zacks Consensus Estimate of $714.5 million. Gold sales fell around 19.3% year over year to 508,000 ounces, while production declining 20.5% to 503,000 ounces. All-in sustaining costs (AISC) were $999 per gold ounce, up roughly 20.8% year over year. The stock retreated about 14% since reporting earnings on Oct 24.
Barrick Gold Q3 Earnings in Focus
Barrick Gold Corp posted net loss (attributable to equity holders) of $412 million or 35 cents per share for third-quarter 2018, wider than net loss of $11 million or a penny per share a year ago.
Barring one-time items, adjusted net earnings came in at 8 cents per share, down from 17 cents a year ago. It, however, beat the Zacks Consensus Estimate of 6 cents. Lower realized prices of gold and copper along with higher direct mining costs weighed on adjusted net earnings.
Revenues fell roughly 7.8% year over year to $1,837 million in the quarter. Nevertheless, the figure beat the Zacks Consensus Estimate of $1,809.3 million. It has shed 3.3% (as of Oct 29, 2018) since reporting earnings on Oct 24 after market closes (read: Barrick Gold to Acquire Randgold: ETFs Set to Shine).
ETF Impact
The aforementioned companies have considerable exposure in large-cap funds like VanEck Vectors Gold Miners ETF (GDX - Free Report) , iShares MSCI Global Gold Miners ETF (RING - Free Report) , Invesco Global Gold & Precious Metals ETF and Sprott Gold Miners ETF (SGDM - Free Report) (see all Materials ETFs here).
In PSAU, NEM (7.54%), ABX (9.78%) and GG (5.29%) take the top three positions. RING invests more than 14% each in NEM and more than 13% in ABX, while GG takes 6.58%. In GDX also, NEM, ABX and GG take 10.41%, 9.39% and 4.95% share, respectively. SGDM puts about 14.01% in NEM, 12.23% in GG and 5.84% in ABX. PSAU, RING, GDX and SGDM has lost about 3.6%, 4.3%, 4.3% and 6% since Oct 24, 2018.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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