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Why IAMGOLD Stock Has Plunged Over 12% Today

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IAMGOLD’s weaker-than-expected Q1 2019 results

IAMGOLD (IAG) released its Q1 2019 results yesterday after markets closed. The company reported EPS of $0.0, which implied a miss, as analysts were expecting EPS of $0.01. Its top line of $251 million also missed analysts’ estimate of $278 million. The revenue also fell 20% YoY. IAG’s adjusted loss during the quarter was $2.2 million, mainly due to a decline in output. The company has maintained its production and cost guidance for the time being, but it said it might review and update it in the second quarter.

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The company’s president and chief executive officer, Steve Letwin, said, “Despite a challenging first quarter, we are driving towards achieving a self-funded, self-sustaining operating model.”

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IAG’s stock plunges more than 12%

IAMGOLD’s stock had been one of the few gold miners to have given a positive return in 2019. Until yesterday, IAG was trading up by 9% year-to-date as compared to a fall of 5.1% in the VanEck Vectors Gold Miners ETF (GDX) and a 3.7% fall in the SPDR Gold Shares (GLD). However, its weaker-than-expected results and consequent warning of a guidance review triggered a selling spree. At 11:50 AM EST, the stock was trading down by more than 12%.

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