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Newmont Mining Second Quarter Earnings Preview
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NEM
In the lead up to Newmont Mining's (NYSE:NEM) announcement of its second quarter earnings on Friday, July 27, 2012 analysts' expectations have fallen over the past month to earnings of 95 cents per share from earnings of $1.04 per share.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
What to Expect: Newmont Mining is expected to report 95 cents per share, up 5.6% from a year ago when the company reported earnings of 90 cents per share.
Three months ago, the consensus estimate was $1.05. For the fiscal year, analysts are projecting earnings of $4.42 per share.
Revenue is expected to exceed last year's figure of $2.38 billion by 5.7% and come in at $2.52 billion for the quarter. Revenue of $10.65 billion is expected for the fiscal year.
Company Performance: Revenue for Newmont Mining has been on the rise for four consecutive quarters. It increased 8.8% to $2.68 billion in the first quarter. Prior to that, the figure rose 8.5% in the fourth quarter of the last fiscal year, 5.7% in the third quarter of the last fiscal year and 10.7% in the second quarter of the last fiscal year.
P/E ratio for NEM is 66.2. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: The P/E Ratio: A Good Market-Timing Indicator
The stock price has fallen 7.1% to $44.33 from $47.73 since April 26, 2012. July 3, 2012 to July 12, 2012 marked one of Newmont Mining's worst periods, as the share price fell $4.27.
The Competition: Newmont Mining explores and acquires gold properties and produces copper. Analysts generally consider Newmont Mining a hold, with eight of 16 analysts rating it as such. They have grown pessimistic about the stock, as the number of buy ratings has dropped slightly over the past three months.
The company's closest competitor in the gold and silver industry is Barrick Gold Corporation (ABX). Analysts are less optimistic about Newmont Mining than about Barrick Gold Corporation. Fourteen out of 19 analysts rate the latter a buy compared to eight of 16 for the former.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
What to Expect: Newmont Mining is expected to report 95 cents per share, up 5.6% from a year ago when the company reported earnings of 90 cents per share.
Three months ago, the consensus estimate was $1.05. For the fiscal year, analysts are projecting earnings of $4.42 per share.
Revenue is expected to exceed last year's figure of $2.38 billion by 5.7% and come in at $2.52 billion for the quarter. Revenue of $10.65 billion is expected for the fiscal year.
Company Performance: Revenue for Newmont Mining has been on the rise for four consecutive quarters. It increased 8.8% to $2.68 billion in the first quarter. Prior to that, the figure rose 8.5% in the fourth quarter of the last fiscal year, 5.7% in the third quarter of the last fiscal year and 10.7% in the second quarter of the last fiscal year.
The stock price has fallen 7.1% to $44.33 from $47.73 since April 26, 2012. July 3, 2012 to July 12, 2012 marked one of Newmont Mining's worst periods, as the share price fell $4.27.
The Competition: Newmont Mining explores and acquires gold properties and produces copper. Analysts generally consider Newmont Mining a hold, with eight of 16 analysts rating it as such. They have grown pessimistic about the stock, as the number of buy ratings has dropped slightly over the past three months.
The company's closest competitor in the gold and silver industry is Barrick Gold Corporation (ABX). Analysts are less optimistic about Newmont Mining than about Barrick Gold Corporation. Fourteen out of 19 analysts rate the latter a buy compared to eight of 16 for the former.
by
Investopedia Staff
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