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How Will Newmont Mining's 3Q17 Results Drive Its Future?

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How Will Newmont Mining's 3Q17 Results Drive Its Future? PART 1 OF 6

Newmont’s 3Q17 Results: Bad News despite an Earnings Beat?

Newmont Mining’s earnings beat

Newmont Mining (NEM) reported its 3Q17 earnings before the market opened on October 26. It held a conference call the same day to discuss the results with analysts.

Newmont’s 3Q17 Results: Bad News despite an Earnings Beat?

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After registering a beat in 1Q17 and 2Q17, Newmont again beat earnings estimates in 3Q17. It achieved earnings per share (or EPS) of $0.35, beating estimates by $0.02. Its revenues of $1.88 billion also surpassed analysts’ expectations by $20 million. Higher production from new mines helped Newmont’s top line.

Stock price reaction

Despite delivering an earnings beat, Newmont Mining’s stock was down 2.6% on October 26. The company’s costs were higher than expected while realized prices were lower. This result may not have gone down very well with investors, leading to the drop in the stock price.

Among its peers (GDX), Barrick Gold (ABX) announced its 3Q17 results on October 25, which was a miss on earnings expectations. After its earnings call on October 26, its stock fell 7.8%. Goldcorp (GG) also released its 3Q17 results on the same day as Barrick. GG’s results beat market expectations and its stock rose after reporting the results. Kinross Gold (KGC) plans to report its 3Q17 results on November 8.

Series preview

In this series, we’ll analyze Newmont Mining’s (NEM) 3Q17 earnings in detail. We’ll also cover key points from the company’s 3Q17 earnings conference call.

Let’s continue to the next part of the series by looking at NEM’s 3Q17 production and revenues.

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