Kinross Gold Increases Sales but Misses Estimates on Earnings

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Kinross Gold (NYS: KGC) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Kinross Gold missed estimates on revenues and missed estimates on earnings per share.

Compared with the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.


Margins shrank across the board.

Revenue details
Kinross Gold chalked up revenue of $1.04 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $1.07 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $937.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.18. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.09 for Q1 were 59% lower than the prior-year quarter's $0.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.0%, 470 basis points worse than the prior-year quarter. Operating margin was 30.2%, 500 basis points worse than the prior-year quarter. Net margin was 10.2%, 1,650 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $4.68 billion. The average EPS estimate is $0.95.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,361 members out of 1,422 rating the stock outperform, and 61 members rating it underperform. Among 221 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 206 give Kinross Gold a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinross Gold is outperform, with an average price target of $14.34.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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