Newmont Mining Earnings: Here’s Why the Stock is Down Now

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Newmont Mining Corp. (NYSE:NEM) 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 2.41%.

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Newmont Mining Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 38.26% to $0.71 in the quarter versus EPS of $1.15 in the year-earlier quarter.

Revenue: Decreased 18.86% to $2.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Newmont Mining Corp. reported adjusted EPS income of $0.71 per share. By that measure, the company missed the mean analyst estimate of $0.77. It missed the average revenue estimate of $2.27 billion.

Quoting Management: “We made progress on our plans to build long-term shareholder value through disciplined capital allocation and cost and efficiency improvements,” said Gary Goldberg, President and Chief Executive Officer. “We cut planned 2013 capital expenditure guidance by $100 million and reduced our consolidated spending by $217 million compared to the first quarter of 2012. This drove our all-in sustaining cost per ounce to the lower end of guidance despite some production challenges. We continue to build on this and the $130 million savings we realized last year by streamlining operating and overhead costs and investing in more profitable production to improve shareholder returns. We expect first production at Akyem in Ghana later this year, and the ramp up Phase 6 ore mining at Batu Hijau in Indonesia late next year, to enhance free cash flow in 2014 and 2015,” added Goldberg.

Key Stats (on next page)…

Revenue decreased 12.08% from $2.48 billion in the previous quarter. EPS decreased 36.04% from $1.11 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 $1.04 to a profit $0.72. For the current year, the average estimate has moved down from a profit of $4.53 to a profit of $3.25 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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