Newmont Mining Corp Earnings: After Four Straight INCREASES, Revenue and Net Income FALLS

S&P 500 (NYSE:SPY) component Newmont Mining Corporation (NYSE:NEM) reported its results for the second quarter. Newmont Mining explores and acquires gold properties and produces copper.

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Newmont Mining Corporation Earnings Cheat Sheet

Results: Net income for the mining/gold fell to $279 million (56 cents per share) vs. $387 million (77 cents per share) a year earlier. This is a decline of 27.9% from the year-earlier quarter.

Revenue: Fell 6.5% to $2.23 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Newmont Mining Corporation fell short of the mean analyst estimate of 95 cents per share. It fell short of the average revenue estimate of $2.52 billion.

Quoting Management: “Globally, our portfolio continues to perform in line with our budget. As expected, our second quarter gold production was impacted by annual planned mill maintenance in Nevada and lower gold and copper production from Batu Hijau in Indonesia, as we continue with the planned stripping of Phase six,” said Richard O’Brien, Chief Executive Officer. “Our capital expenditures are expected to be approximately $300 million lower than originally planned for the year, largely as a result of our slower development timetable at Conga in Peru. We also expect our advanced projects, exploration and G&A expenditures to collectively be approximately $100 million lower this year. As we continue to optimize and refine our plans, we expect to deliver further efficiencies and cost savings for 2013 and beyond,” added Mr. O’Brien.

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 10.7%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.15 versus a mean estimate of net income of $1.14 per share.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the third quarter is $1.11 per share, dropping from $1.21 a month ago. For the fiscal year, the average estimate has moved down from $4.74 a share to $4.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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