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The gold miner missed the Zacks Consensus Estimate in three of the trailing four quarters while beat the same once. For this timeframe, the company delivered a negative earnings surprise of roughly 9.8%, on average. Newmont posted a negative earnings surprise of 23.3% in the last reported quarter.
The company’s third-quarter results are expected to reflect improved grades across a number of mines. However, lower gold prices are likely to have affected its performance.
The stock has lost 20.3% in the past year compared with the industry’s 15.2% decline.
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 third-quarter consolidated revenues for Newmont is currently pegged at $2,790 million, which calls for a decline of around 3.6% year over year.
The Zacks Consensus Estimate for third-quarter average realized prices of gold stands at $1,750, suggesting a 1.6% year-over-year decrease and a 4.7% decline on a sequential comparison basis. The same for the attributable gold production is pegged at 1.56 million ounces, indicating a 7.6% year-over-year increase and a 4.6% sequential rise.
Some Factors to Watch For
Improved production performance is expected to have supported the company’s third-quarter results. In South America, the Merian mine is likely to have delivered higher production on improved mill performance and higher ore grade. Cerro Negro is expected to have delivered improved productivity.
Performance at Penasquito in North America is also likely to remain strong in the third quarter, aided by higher grades. Musselwhite is also expected to have delivered improved productivity and grades. In Australia, performance across Tanami and Boddington mines is likely to have been aided by higher ore grades in the to-be-reported quarter.
Strong production across Akyem and Ahafo, driven by higher ore grade, is also expected to have driven results in the company’s Africa operation in the September quarter.
Meanwhile, gold prices lost the momentum since the second quarter. Gold rallied roughly 8% in the first quarter of 2022, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict. Amid the economic uncertainties, weakness in equity markets and increased volatility, gold stood out as an effective hedge.
However, gold prices erased the gains and closed the second quarter roughly 7% lower. The downdrift continued in the third quarter with prices falling around 8% in the quarter. Higher bond yields, interest rate hikes, geopolitical instability and a sharp rally in the U.S. dollar weighed on gold prices.
Lower year-over-year average realized gold prices are expected to have weighed on Newmont’s performance in the September 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 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 29 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 (Hold).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for Albemarle’s third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.84.
Koppers Holdings Inc. (KOP - Free Report) , slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +1.15%.
The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 52 cents. ATI currently carries a Zacks Rank #3.
Image: Bigstock
Newmont (NEM) to Report Q3 Earnings: What's in the Offing?
Newmont Corporation (NEM - Free Report) is scheduled to report third-quarter 2022 results before the opening bell on Nov 1.
The gold miner missed the Zacks Consensus Estimate in three of the trailing four quarters while beat the same once. For this timeframe, the company delivered a negative earnings surprise of roughly 9.8%, on average. Newmont posted a negative earnings surprise of 23.3% in the last reported quarter.
The company’s third-quarter results are expected to reflect improved grades across a number of mines. However, lower gold prices are likely to have affected its performance.
The stock has lost 20.3% in the past year compared with the industry’s 15.2% decline.
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 third-quarter consolidated revenues for Newmont is currently pegged at $2,790 million, which calls for a decline of around 3.6% year over year.
The Zacks Consensus Estimate for third-quarter average realized prices of gold stands at $1,750, suggesting a 1.6% year-over-year decrease and a 4.7% decline on a sequential comparison basis. The same for the attributable gold production is pegged at 1.56 million ounces, indicating a 7.6% year-over-year increase and a 4.6% sequential rise.
Some Factors to Watch For
Improved production performance is expected to have supported the company’s third-quarter results. In South America, the Merian mine is likely to have delivered higher production on improved mill performance and higher ore grade. Cerro Negro is expected to have delivered improved productivity.
Performance at Penasquito in North America is also likely to remain strong in the third quarter, aided by higher grades. Musselwhite is also expected to have delivered improved productivity and grades. In Australia, performance across Tanami and Boddington mines is likely to have been aided by higher ore grades in the to-be-reported quarter.
Strong production across Akyem and Ahafo, driven by higher ore grade, is also expected to have driven results in the company’s Africa operation in the September quarter.
Meanwhile, gold prices lost the momentum since the second quarter. Gold rallied roughly 8% in the first quarter of 2022, thanks to rapidly rising inflation, higher interest rates and uncertainties surrounding the Russia-Ukraine conflict. Amid the economic uncertainties, weakness in equity markets and increased volatility, gold stood out as an effective hedge.
However, gold prices erased the gains and closed the second quarter roughly 7% lower. The downdrift continued in the third quarter with prices falling around 8% in the quarter. Higher bond yields, interest rate hikes, geopolitical instability and a sharp rally in the U.S. dollar weighed on gold prices.
Lower year-over-year average realized gold prices are expected to have weighed on Newmont’s performance in the September 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 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 29 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 (Hold).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +3.64% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.84.
Koppers Holdings Inc. (KOP - Free Report) , slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +1.15%.
The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 52 cents. ATI currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.