Goldcorp’s 4Q17 Earnings Beat Estimates, Stock Soars



Goldcorp’s 4Q17 results

Goldcorp (GG) reported its 4Q17 results after the market closed on February 14. It held a conference call the next day to discuss the results.

Goldcorp thoroughly beat the consensus EPS (earnings per share) estimate of $0.10 by $0.18. It, however, slightly missed revenue estimates by $15 million by reporting revenues of $853 million. GG’s 4Q17 EPS also showed an improvement of 133% year-over-year (or YoY).

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Stock price reaction

Goldcorp’s earnings slightly beat market expectations. GG rose 4.5% on February 15 after the conference call. Investors seemed pleased with the company’s earnings beat and future guidance. The company’s 20/20/20 growth plan also seemed to be on track, which provided investors with confidence in GG’s future growth and profitability.

Among its peers (GDX), Barrick Gold (ABX) also reported its 4Q17 results on February 14 after the market closed. It fell 2.3% on February 15, mainly due to an earnings miss. Newmont Mining (NEM) will release its 4Q17 results on February 22. Kinross Gold (KGC) reported its 4Q17 results on February 14. Its earnings missed consensus expectations. KGC’s stocks fell 7% on February 15 on an earnings miss and lower production guidance.

What’s the outlook?

In this series, we’ll analyze Goldcorp’s prospects based on its 4Q17 results and management’s comments. We’ll also analyze the company’s production and cost performances. We’ll try to see how Goldcorp is positioning itself amid volatile gold prices (GLD). We’ll also discuss the company’s progression on its 20/20/20 plan, which is aimed at improving reserves, unit costs, and production 20% each by 2021. In the next part of this series, we’ll look at Goldcorp’s key financial measures in 4Q17.


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