Kinross Gold Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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