Newmont Mining Whiffs on Revenue

Newmont Mining (NYSE: NEM) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Newmont Mining whiffed on revenue and whiffed on earnings per share.

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

Margins dropped across the board.

Revenue details
Newmont Mining tallied revenue of $2.23 billion. The six analysts polled by S&P Capital IQ wanted to see revenue of $2.53 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $2.38 billion.

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 $0.59. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.95 per share. GAAP EPS of $0.56 for Q2 were 27% lower than the prior-year quarter's $0.77 per share. (The prior-year quarter included -$0.27 per share in earnings from discontinued operations.)

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%, 540 basis points worse than the prior-year quarter. Operating margin was 26.6%, 1,040 basis points worse than the prior-year quarter. Net margin was 12.5%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.71 billion. On the bottom line, the average EPS estimate is $1.11.

Next year's average estimate for revenue is $10.81 billion. The average EPS estimate is $4.46.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,154 members out of 1,243 rating the stock outperform, and 89 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 222 give Newmont Mining a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newmont Mining is outperform, with an average price target of $65.62.

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