Back to top

Goldcorp (GG) Q2 Earnings Beat, Revenues Miss Estimates

Read MoreHide Full Article

Goldcorp Inc. (GG - Free Report) reported net earnings of $135 million or 16 cents per share for second-quarter 2017, against a net loss of $78 million or 9 cents per share a year ago.

Barring one-time items, adjusted earnings for the quarter was 12 cents per share. The figure beat the Zacks Consensus Estimate of 10 cents.

Goldcorp recorded revenues of $822 million in the reported quarter, missing the Zacks Consensus Estimate of $863 million.

Gold sales went up around 5.3% year over year to 649,000 ounces in the reported quarter and production rose 3.6% to 635,000 ounces.

All-in sustaining costs (AISC) were $800 per gold ounce (down roughly 25% year over year).

Goldcorp Inc. Price, Consensus and EPS Surprise

 

Goldcorp Inc. Price, Consensus and EPS Surprise | Goldcorp Inc. Quote

Mining Highlights

At the Penasquito mine, gold production was 123,000 ounces, marking an increase of 241.7% year over year. AISC was $328 per ounce compared with $3,094 in the year-ago quarter.

At the Cerro Negro in Argentina, gold production was 112,000 ounces, marking an increase of 30.2% year over year. AISC was $694 per ounce compared with $808 in the year-ago quarter.

At the Pueblo Viejo mine, gold production was 115,000 ounces, marking an increase of 15% year over year. AISC was $440 per ounce compared with $587 in the year-ago quarter.

Financial Position

As of Jun 30, 2017, Goldcorp had total liquidity of $3 billion, including $0.1 billion in short-term investments and cash and cash equivalents and $2.9 billion credit facility. The company recorded adjusted operating cash flows of $320 million for the second quarter, an increase of 56.9% year over year.

Outlook

According to Goldcorp, its portfolio optimization strategies are continuing to drive net asset value per share. The company aims to achieve a 20% increase in gold reserves, 20% surge in gold production and 20% reduction in AISC over the next five years.   

Goldcorp expects gold production of 2.5 million ounces (+/- 5%) for 2017. The company has revised its outlook for AISC in 2017 to reflect the progress it has made on initiative to realize sustainable annual efficiencies of $250 million by mid-2018. AISC for 2017 has been projected at $825 per ounce (+/- 5%), down from $850 per ounce expected earlier.

Price Performance

Goldcorp has lost 4.4% in last three months versus the 5.1% gain of its industry.

 


 

Zacks Rank & Key Picks

Goldcorp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are The Sherwin-Williams Company (SHW - Free Report) , Ternium S.A. (TX - Free Report) and Hitachi Chemical Company, Ltd. (HCHMY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Sherwin-Williams has expected long-term earnings growth rate of 11.4%.

Ternium has expected long-term earnings growth rate of 18.4%.

Hitachi Chemical has expected long-term earnings growth rate of 5%.

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>



More from Zacks Analyst Blog

You May Like