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Why Is Newmont (NEM) Up 12.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Newmont Corporation (NEM - Free Report) . Shares have added about 12.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Newmont due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Newmont's Earnings and Revenues Beat Estimates in Q2
Newmont reported second-quarter 2024 earnings from continuing operations of 73 cents per share compared with 19 cents in the year-ago quarter.
Barring one-time items, adjusted earnings were 72 cents per share compared with 33 cents reported in the prior-year quarter. It topped the Zacks Consensus Estimate of 53 cents.
Newmont’s revenues for the second quarter were roughly $4.4 billion, up 64% from the prior-year quarter. The figure topped the Zacks Consensus Estimate of around $3.49 billion. The increase in the top line was primarily due to higher year-over-year production and realized gold prices.
Operational Highlights
Newmont's attributable gold production in the second quarter of 1.61 million ounces was 30% higher than the prior-year quarter’s figure. The figure lagged our estimate of 1.72 million ounces.
Average realized prices of gold rose around 21% year over year to $2,374 per ounce. The figure was higher than our estimate of $2,025 per ounce.
The company’s CAS for gold were $1,152 per ounce, up 9% year over year. The figure was above our estimate of $1,057 per ounce.
AISC for gold were up around 6% year over year to $1,562 per ounce. The figure was above our estimate of $1,400 per ounce.
Financials
The company ended the quarter with cash and cash equivalents of $2.6 billion, down 8% year over year. At the end of the quarter, the company had a long-term debt of around $8.69 billion, up 56% year over year.
Net cash from continuing operations amounted to roughly $1.39 billion in the reported quarter, up from $656 million in the year-ago quarter.
Outlook
Newmont anticipates maintaining its expected gold production for 2024 at about 6.9 million ounces, with production expected to be second-half weighted. Newmont also projects a CAS for gold at $1,050 per ounce and an AISC of $1,400 per ounce.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 11.81% due to these changes.
VGM Scores
Currently, Newmont has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Newmont has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Newmont (NEM) Up 12.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Newmont Corporation (NEM - Free Report) . Shares have added about 12.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Newmont due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Newmont's Earnings and Revenues Beat Estimates in Q2
Newmont reported second-quarter 2024 earnings from continuing operations of 73 cents per share compared with 19 cents in the year-ago quarter.
Barring one-time items, adjusted earnings were 72 cents per share compared with 33 cents reported in the prior-year quarter. It topped the Zacks Consensus Estimate of 53 cents.
Newmont’s revenues for the second quarter were roughly $4.4 billion, up 64% from the prior-year quarter. The figure topped the Zacks Consensus Estimate of around $3.49 billion. The increase in the top line was primarily due to higher year-over-year production and realized gold prices.
Operational Highlights
Newmont's attributable gold production in the second quarter of 1.61 million ounces was 30% higher than the prior-year quarter’s figure. The figure lagged our estimate of 1.72 million ounces.
Average realized prices of gold rose around 21% year over year to $2,374 per ounce. The figure was higher than our estimate of $2,025 per ounce.
The company’s CAS for gold were $1,152 per ounce, up 9% year over year. The figure was above our estimate of $1,057 per ounce.
AISC for gold were up around 6% year over year to $1,562 per ounce. The figure was above our estimate of $1,400 per ounce.
Financials
The company ended the quarter with cash and cash equivalents of $2.6 billion, down 8% year over year. At the end of the quarter, the company had a long-term debt of around $8.69 billion, up 56% year over year.
Net cash from continuing operations amounted to roughly $1.39 billion in the reported quarter, up from $656 million in the year-ago quarter.
Outlook
Newmont anticipates maintaining its expected gold production for 2024 at about 6.9 million ounces, with production expected to be second-half weighted. Newmont also projects a CAS for gold at $1,050 per ounce and an AISC of $1,400 per ounce.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 11.81% due to these changes.
VGM Scores
Currently, Newmont has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Newmont has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.