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Newmont (NEM) to Report Q1 Earnings: What's in the Cards?

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Newmont Corporation (NEM - Free Report) is scheduled to report first-quarter 2022 results before the opening bell on Apr 22.

The gold miner surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. For this timeframe, the company delivered a negative earnings surprise of roughly 1.3%, on average. Newmont posted an earnings surprise of 2.6% in the last reported quarter. The company’s first-quarter results are expected to reflect the benefits of higher gold prices and higher grades across a number of mines.
 
The stock has gained 24% in the past year compared with the industry’s 9.5% rise.

 

Zacks Investment Research
Image Source: Zacks Investment Research



Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Newmont 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 earning beat.

Earnings ESP: Earnings ESP for Newmont is +8.37%. The Zacks Consensus Estimate for the first quarter is currently pegged at 82 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.

What Do the Estimates Say?

The Zacks Consensus Estimate for first-quarter consolidated revenues for Newmont is currently pegged at $2,968 million, which calls for a rise of around 3.3% year over year.

Some Factors to Watch For

The company’s first-quarter results are expected to have benefited from higher realized gold prices. Gold rallied roughly 8% in the first quarter, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict. Amid the ongoing economic uncertainty, weakness in both equity and bond markets and increased volatility, gold stood out as an effective hedge. Higher average realized gold prices are expected to have aided Newmont’s performance in the March quarter.  

Strong production performance is also expected to have supported the company’s first-quarter results. In South America, the Merian mine is likely to continue to have delivered higher tons mined and grades in the quarter. Cerro Negro is expected to have delivered improved productivity and performance. Yanacocha is also likely to have achieved higher grades in the quarter.

Performance at Penasquito in North America is also likely to have been supported by strong grades in the first quarter. Musselwhite is also expected to have delivered improved productivity and production. In Australia, performance across Tanami and Boddington mines is likely to have been aided by higher grades in the to-be-reported quarter. Strong production across Akyem and Ahafo is also expected to have driven results in the company’s Africa operation in the first quarter.

 

Newmont Corporation Price and EPS Surprise

 

Newmont Corporation Price and EPS Surprise

Newmont Corporation price-eps-surprise | Newmont Corporation Quote

 

Stocks That Warrant a Look

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

Dow Inc. (DOW - Free Report) , scheduled to release earnings on Apr 21, has an Earnings ESP of +5.45% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dow’s first-quarter earnings has been revised 5.2% upward over the past 60 days. The consensus estimate for DOW’s earnings for the quarter is currently pegged at $2.02.

The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The consensus estimate for MOS’s earnings for the quarter is currently pegged at $2.44.

Cleveland-Cliffs Inc. (CLF - Free Report) , expected to release earnings on Apr 22, has an Earnings ESP of +8.85% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Cleveland-Cliffs’ first-quarter earnings has been revised 2% upward over the past 60 days. The consensus estimate for CLF’s earnings for the first quarter stands at $1.51.


Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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