Goldcorp Earnings: Here’s Why Investors Don’t Like These Results

Goldcorp Inc. (NYSE:GG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.39%.

Goldcorp Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 65.85% to $0.14 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Decreased 20.13% to $889 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Goldcorp Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.22. It missed the average revenue estimate of $1.16 billion.

Quoting Management: “Gold production across the portfolio was as planned during the second quarter, but revenues and operating cash flows were significantly impacted by lower realized gold prices, timing of gold production and a temporary increase in inventory at Red Lake,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer. “Almost half of our total quarterly gold and silver sales occurred in the month of June, which coincided with a period of particularly weak prices for the metals.”

Key Stats (on next page)…

Revenue decreased 12.41% from $1.02 billion in the previous quarter. EPS decreased 54.84% from $0.31 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.44 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $1.72 to a profit of $0.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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