Barrick Gold's Latest EPS Top Last Year's by 23%

Seth Jayson, The Motley Fool
Updated

Barrick Gold (NYS: ABX) reported earnings on Feb. 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Barrick Gold met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.

Gross margins shrank, operating margins grew, net margins contracted.

Revenue details
Barrick Gold booked revenue of $3.79 billion. The six analysts polled by S&P Capital IQ foresaw net sales of $3.75 billion on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $2.95 billion.

anImage
anImage

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

EPS details
Non-GAAP EPS came in at $1.17. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.27 per share on the same basis. GAAP EPS of $0.96 for Q4 were 7.9% higher than the prior-year quarter's $0.89 per share.

anImage
anImage

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 54.3%, 670 basis points worse than the prior-year quarter. Operating margin was 45.6%, 150 basis points better than the prior-year quarter. Net margin was 25.3%, 510 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.93 billion. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $16.41 billion. The average EPS estimate is $5.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,960 members rating the stock outperform, and 119 members rating it underperform. Among 477 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 448 give Barrick Gold a green thumbs-up, and 29 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Barrick Gold is outperform, with an average price target of $66.78.

Is Barrick Gold the right metals stock for you? Find out the best way to profit from inflation and gold with a little-known company we profile in, "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement