The Gory Details on Kinross Gold's Double Miss

Seth Jayson, The Motley Fool
Updated

Kinross Gold (NYS: KGC) reported earnings on Feb. 15. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded, and GAAP loss per share grew.

Gross margins shrank, operating margins expanded, and net margins shrank.

Revenue details
Kinross Gold tallied revenue of $949.3 million. The seven analysts polled by S&P Capital IQ anticipated net sales of $989.2 million on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $920.4 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
Non-GAAP EPS came in at $0.17. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS were -$2.45 for Q4 compared to -$0.06 per share for the prior-year quarter.

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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 57.9%, 160 basis points worse than the prior-year quarter. Operating margin was 28.5%, 60 basis points better than the prior-year quarter. Net margin was -293.2%, 28,530 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $4.75 billion. The average EPS estimate is $0.98.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,336 members rating the stock outperform and 60 members rating it underperform. Among 285 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 269 give Kinross Gold a green thumbs-up, and 16 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 $20.12.

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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.

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