Back to top

Image: Bigstock

Newmont Goldcorp (NEM) to Post Q3 Earnings: What's in Store?

Read MoreHide Full Article

Newmont Goldcorp Corporation (NEM - Free Report) is scheduled to report third-quarter 2019 results on Nov 5, before the opening bell. The company’s third-quarter performance is likely to have benefited from higher gold prices. However, unlawful blockade of the Penasquito might have impacted results.

The stock has gained 22.5% in the past year compared with the industry’s 54.7% surge.



Factors at Play in Q3

The company’s third-quarter production is likely to have benefited from the Ahafo mine, which is gaining from higher grades in both the Subika open pit and underground. Higher grades at Akyem, Cerro Negro and Eleonore are also expected to have contributed to the company’s third-quarter performance. The acquired Goldcorp assets are likely to have supported production in the third quarter.  

Higher gold pricing environment provides additional upside. Benefits of higher gold prices are expected to get reflected in Newmont Goldcorp’s third-quarter margins. After a turbulent 2018, gold has had a stellar run in 2019. Uncertainties related to the U.S.-China trade standoff and geopolitical tensions have triggered demand for gold so far this year. Higher prices are likely to have had a positive impact on the company’s third-quarter earnings.

Developments in Q3

Unlawful blockade of the Penasquito impacted the production of the mine in the third quarter. In October, the company announced that the blockade affected the mine’s production output by around 11,000 ounces of gold, 1.7 million ounces of silver, 22.8 million pounds of zinc and 13.7 million pounds of lead.

Preliminary results show that Penasquito mine produced 58,000 ounces of gold and sold 36,000 ounces of gold in the third quarter. The mine produced 7,416,000 ounces of silver in the third quarter. Notably, the blockade has been lifted and the company is working closely with the state and federal governments for a sustainable and long-term solution.

Q3 Estimates

The Zacks Consensus Estimate for consolidated revenues for Newmont Goldcorp is currently pegged at $3,017 million, which indicates a rise of nearly 74.8% year over year and 34.1% sequentially.

What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Newmont Goldcorp 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 Goldcorp is -0.83%. The Zacks Consensus Estimate is currently pegged at 40 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Newmont Goldcorp currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Newmont Goldcorp Corporation Price and EPS Surprise

 

Newmont Mining Corporation Price and EPS Surprise

Newmont Goldcorp Corporation price-eps-surprise | Newmont Goldcorp Corporation Quote

 

Stocks Poised to Beat Estimates

Here are some companies in the basic materials space you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Franco-Nevada Corporation (FNV - Free Report) has an Earnings ESP of +0.34% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross Gold Corporation (KGC - Free Report) has an Earnings ESP of +2.50% and flaunts a Zacks Rank #1.

Arconic Inc has an Earnings ESP of +1.42% and carries a Zacks Rank #3.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>

Published in