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Newmont's (NEM) Q4 Earnings Lag Estimates, Revenues Beat
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Newmont Corporation (NEM - Free Report) reported a fourth-quarter 2023 net loss from continuing operations of $3.22 per share compared with a loss of $1.87 in the year-ago quarter.
Barring one-time items, adjusted earnings were 50 cents per share compared with 44 cents reported in the prior-year quarter. It missed the Zacks Consensus Estimate of 51 cents.
NEM’s revenues for the fourth quarter were $3,957 million, up 23.7% from $3,200 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $3,171.4 million. The increase in the top line was primarily due to higher sales volumes and realized gold prices.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont's attributable gold production in the fourth quarter of 1.74 million ounces was 6.7% higher than the prior-year figure. The figure beat our estimate of 1.62 million ounces.
Average realized prices of gold rose around 14% year over year to $2,004 per ounce. The figure topped our estimate of $1,991 per ounce.
The company’s costs applicable to sales (CAS) for gold were $1,086 per ounce, up 15.5% year over year. The figure was ahead of our estimate of $903 per ounce.
All-in-sustaining costs (AISC) for gold were up around 22.2% year over year to $1,485 per ounce. The figure outpaced our estimate of $1,326 per ounce.
FY 2023 Results
Earnings, as adjusted, for 2023 were $1.61 per share compared with $1.85 a year ago. Net sales declined 0.8% to $11,812 million.
Financials
The company ended the quarter with cash and cash equivalents of $3,002 million, up 4.3% year over year. At the end of the quarter, the company had long-term debt of $6,951 million, up 24.8% year over year.
Net cash from continuing operations amounted to $616 million for the reported quarter, down from $1,010 million.
Outlook
For 2024, Newmont expects attributable gold production of roughly 6.9 million ounces. The company also expects gold CAS of $1,050 per ounce and AISC of $1,400 per ounce.
Price Performance
Newmont’s shares have lost 24.5% in the past year compared with a 2.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the basic materials space include United States Steel Corporation (X - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 62.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 33.7% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 128.8% in a year.
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Newmont's (NEM) Q4 Earnings Lag Estimates, Revenues Beat
Newmont Corporation (NEM - Free Report) reported a fourth-quarter 2023 net loss from continuing operations of $3.22 per share compared with a loss of $1.87 in the year-ago quarter.
Barring one-time items, adjusted earnings were 50 cents per share compared with 44 cents reported in the prior-year quarter. It missed the Zacks Consensus Estimate of 51 cents.
NEM’s revenues for the fourth quarter were $3,957 million, up 23.7% from $3,200 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $3,171.4 million. The increase in the top line was primarily due to higher sales volumes and realized gold prices.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote
Operational Highlights
Newmont's attributable gold production in the fourth quarter of 1.74 million ounces was 6.7% higher than the prior-year figure. The figure beat our estimate of 1.62 million ounces.
Average realized prices of gold rose around 14% year over year to $2,004 per ounce. The figure topped our estimate of $1,991 per ounce.
The company’s costs applicable to sales (CAS) for gold were $1,086 per ounce, up 15.5% year over year. The figure was ahead of our estimate of $903 per ounce.
All-in-sustaining costs (AISC) for gold were up around 22.2% year over year to $1,485 per ounce. The figure outpaced our estimate of $1,326 per ounce.
FY 2023 Results
Earnings, as adjusted, for 2023 were $1.61 per share compared with $1.85 a year ago. Net sales declined 0.8% to $11,812 million.
Financials
The company ended the quarter with cash and cash equivalents of $3,002 million, up 4.3% year over year. At the end of the quarter, the company had long-term debt of $6,951 million, up 24.8% year over year.
Net cash from continuing operations amounted to $616 million for the reported quarter, down from $1,010 million.
Outlook
For 2024, Newmont expects attributable gold production of roughly 6.9 million ounces. The company also expects gold CAS of $1,050 per ounce and AISC of $1,400 per ounce.
Price Performance
Newmont’s shares have lost 24.5% in the past year compared with a 2.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the basic materials space include United States Steel Corporation (X - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 62.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 33.7% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 128.8% in a year.