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The gold miner missed the Zacks Consensus Estimate in three of the trailing four quarters while beating it once. For this timeframe, the company delivered a negative earnings surprise of roughly 2.6%, on average. Newmont posted a negative earnings surprise of roughly 2% in the last reported quarter. NEM’s first-quarter performance is likely to have been aided by higher production and lower costs. Moreover, higher gold prices are expected to have supported its results.
The stock has lost 22% in the past year compared with the industry’s 7.6% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter consolidated revenues for Newmont is currently pegged at $3,398.7 million, which calls for a rise of around 26.9% year over year.
Some Factors to Watch For
The company’s first-quarter results are likely to have been supported by higher production, driven by the addition of the sites acquired in the Newcrest transaction. The ramp-up of operations at Penasquito following the resolution to the union labor strike and higher production from Nevada Gold Mines and Pueblo Viejo are likely to have aided its production.
Our estimate for attributable gold production is pegged at 1.68 million ounces for the quarter to be reported, which suggests a 32.1% year-over-year increase.
Newmont faced headwinds from higher costs in the fourth quarter of 2023. The company saw higher unit costs in the fourth quarter partly due to higher direct operating costs at Newcrest sites following the acquisition. However, it is expected to have benefited from lower unit costs from higher production volumes in the March quarter. Newmont, in its fourth-quarter call, said that it expects unit costs to improve year-over-year in 2024 driven by steady production of net volumes and the delivery of synergies from portfolio optimization with the lowest unit cost coming from its managed Tier 1 portfolio.
Our estimate for all-in-sustaining costs for the first quarter stands at $1,363 per ounce, which indicates a sequential decline of 8.2% and a year-over-year decrease of 0.9%.
Meanwhile, Gold delivered an annual return of roughly 15% in 2023. Prices were supported by safe-haven demand from the banking crisis and the geopolitical instability notwithstanding record-high interest rates. Notably, gold prices surpassed $2,100 per ounce for the first time in December 2023 on expectations of U.S. monetary policy easing and a weak U.S. dollar. Prices were also driven by the Israel-Hamas conflict, which boosted the demand for safe-haven assets.
The momentum continues this year with prices hitting record highs during the first quarter, crossing the $2,200 per ounce mark in March. The rally has been driven by strong demand from central banks, a dovish Fed interest rate outlook, global uncertainties and a surge in safe-haven demand triggered by geopolitical tensions. Prices of the yellow metal eventually racked up a roughly 8% gain for the first quarter of 2024.
The impacts of higher gold prices are expected to reflect on Newmont’s results in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for Newmont this season. 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 -7.62%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 35 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.
Stocks That Warrant a Look
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:
The consensus estimate for AEM’s earnings for the first quarter is currently pegged at 58 cents per share.
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +12.50% and carries a Zacks Rank #3 at present.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 5 cents.
DuPont de Nemours, Inc. (DD - Free Report) , scheduled to release first-quarter earnings on May 1, has an Earnings ESP of +0.39%.
The Zacks Consensus Estimate for DD's earnings for the first quarter is currently pegged at 65 cents. DD currently carries a Zacks Rank #3.
Image: Bigstock
Newmont (NEM) to Report Q1 Earnings: What's in the Offing?
Newmont Corporation (NEM - Free Report) is scheduled to report first-quarter 2024 results before the opening bell on Apr 25.
The gold miner missed the Zacks Consensus Estimate in three of the trailing four quarters while beating it once. For this timeframe, the company delivered a negative earnings surprise of roughly 2.6%, on average. Newmont posted a negative earnings surprise of roughly 2% in the last reported quarter. NEM’s first-quarter performance is likely to have been aided by higher production and lower costs. Moreover, higher gold prices are expected to have supported its results.
The stock has lost 22% in the past year compared with the industry’s 7.6% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter consolidated revenues for Newmont is currently pegged at $3,398.7 million, which calls for a rise of around 26.9% year over year.
Some Factors to Watch For
The company’s first-quarter results are likely to have been supported by higher production, driven by the addition of the sites acquired in the Newcrest transaction. The ramp-up of operations at Penasquito following the resolution to the union labor strike and higher production from Nevada Gold Mines and Pueblo Viejo are likely to have aided its production.
Our estimate for attributable gold production is pegged at 1.68 million ounces for the quarter to be reported, which suggests a 32.1% year-over-year increase.
Newmont faced headwinds from higher costs in the fourth quarter of 2023. The company saw higher unit costs in the fourth quarter partly due to higher direct operating costs at Newcrest sites following the acquisition. However, it is expected to have benefited from lower unit costs from higher production volumes in the March quarter. Newmont, in its fourth-quarter call, said that it expects unit costs to improve year-over-year in 2024 driven by steady production of net volumes and the delivery of synergies from portfolio optimization with the lowest unit cost coming from its managed Tier 1 portfolio.
Our estimate for all-in-sustaining costs for the first quarter stands at $1,363 per ounce, which indicates a sequential decline of 8.2% and a year-over-year decrease of 0.9%.
Meanwhile, Gold delivered an annual return of roughly 15% in 2023. Prices were supported by safe-haven demand from the banking crisis and the geopolitical instability notwithstanding record-high interest rates. Notably, gold prices surpassed $2,100 per ounce for the first time in December 2023 on expectations of U.S. monetary policy easing and a weak U.S. dollar. Prices were also driven by the Israel-Hamas conflict, which boosted the demand for safe-haven assets.
The momentum continues this year with prices hitting record highs during the first quarter, crossing the $2,200 per ounce mark in March. The rally has been driven by strong demand from central banks, a dovish Fed interest rate outlook, global uncertainties and a surge in safe-haven demand triggered by geopolitical tensions. Prices of the yellow metal eventually racked up a roughly 8% gain for the first quarter of 2024.
The impacts of higher gold prices are expected to reflect on Newmont’s results in the to-be-reported quarter.
Newmont Corporation Price and EPS Surprise
Newmont Corporation price-eps-surprise | Newmont Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Newmont this season. 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 -7.62%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 35 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.
Stocks That Warrant a Look
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:
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on Apr 25, has an Earnings ESP of +4.91% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the first quarter is currently pegged at 58 cents per share.
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +12.50% and carries a Zacks Rank #3 at present.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 5 cents.
DuPont de Nemours, Inc. (DD - Free Report) , scheduled to release first-quarter earnings on May 1, has an Earnings ESP of +0.39%.
The Zacks Consensus Estimate for DD's earnings for the first quarter is currently pegged at 65 cents. DD currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.