Newmont Mining Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Newmont Mining (NYSE:NEM) will unveil its latest earnings on Friday, July 27, 2012. Newmont Mining explores and acquires gold properties and produces copper.

Newmont Mining Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 95 cents per share, a rise of 5.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.05. Between one and three months ago, the average estimate moved down. It also has dropped from $1.04 during the last month. Analysts are projecting profit to rise by 2.1% compared to last year’s $4.42.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of $1.15 per share against a mean estimate of net income of $1.14 per share. In the fourth quarter of the last fiscal year, it missed forecasts by 5 cents.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.37 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Stock Price Performance: Between May 24, 2012 and July 23, 2012, the stock price had fallen $4.13 (-8.5%), from $48.63 to $44.50. The stock price saw one of its best stretches over the last year between October 20, 2011 and October 28, 2011, when shares rose for seven straight days, increasing 11.1% (+$6.85) over that span. It saw one of its worst periods between February 2, 2012 and February 14, 2012 when shares fell for nine straight days, dropping 5.7% (-$3.52) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.52 billion in revenue this quarter, a rise of 5.9% from the year-ago quarter. Analysts are forecasting total revenue of $10.65 billion for the year, a rise of 2.8% from last year’s revenue of $10.36 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.7% in the second quarter of the last fiscal year, 5.7% in the third quarter of the last fiscal year and 8.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

A Look Back: In the first quarter, profit fell 4.7% to $490 million (97 cents a share) from $514 million ($1.03 a share) the year earlier, but exceeded analyst expectations. Revenue rose 8.8% to $2.68 billion from $2.46 billion.

Analyst Ratings: With eight analysts rating the stock as a buy, none rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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

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