Does the Street Have Golden Star Resources Figured Out?

Seth Jayson, The Motley Fool
Updated

Golden Star Resources (AMEX: GSS) is expected to report Q2 earnings around July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Golden Star Resources' revenues will expand 33.6% and EPS will wane 250.0%.

The average estimate for revenue is $146.7 million. On the bottom line, the average EPS estimate is $0.03.


Revenue details
Last quarter, Golden Star Resources reported revenue of $131.0 million. GAAP reported sales were 12% higher than the prior-year quarter's $116.5 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
Last quarter, non-GAAP EPS came in at $0.00. GAAP EPS of $0.04 for Q1 were 100% higher than the prior-year quarter's $0.02 per share.

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

Recent performance
For the preceding quarter, gross margin was 9.0%, 380 basis points better than the prior-year quarter. Operating margin was 2.9%, 820 basis points better than the prior-year quarter. Net margin was 7.0%, 190 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $571.7 million. The average EPS estimate is $0.11.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 813 members out of 878 rating the stock outperform, and 65 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 give Golden Star Resources a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Golden Star Resources is hold, with an average price target of $2.46.

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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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