Newmont's (NEM) Q4 Earnings Lag Estimates, Revenues Beat
Newmont Corporation NEM reported a fourth-quarter 2023 net loss from continuing operations of $3.22 per share compared with a loss of $1.87 in the year-ago quarter.
Barring one-time items, adjusted earnings were 50 cents per share compared with 44 cents reported in the prior-year quarter. It missed the Zacks Consensus Estimate of 51 cents.
NEM’s revenues for the fourth quarter were $3,957 million, up 23.7% from $3,200 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $3,171.4 million. The increase in the top line was primarily due to higher sales volumes and realized gold prices.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote
Operational Highlights
Newmont's attributable gold production in the fourth quarter of 1.74 million ounces was 6.7% higher than the prior-year figure. The figure beat our estimate of 1.62 million ounces.
Average realized prices of gold rose around 14% year over year to $2,004 per ounce. The figure topped our estimate of $1,991 per ounce.
The company’s costs applicable to sales (CAS) for gold were $1,086 per ounce, up 15.5% year over year. The figure was ahead of our estimate of $903 per ounce.
All-in-sustaining costs (AISC) for gold were up around 22.2% year over year to $1,485 per ounce. The figure outpaced our estimate of $1,326 per ounce.
FY 2023 Results
Earnings, as adjusted, for 2023 were $1.61 per share compared with $1.85 a year ago. Net sales declined 0.8% to $11,812 million.
Financials
The company ended the quarter with cash and cash equivalents of $3,002 million, up 4.3% year over year. At the end of the quarter, the company had long-term debt of $6,951 million, up 24.8% year over year.
Net cash from continuing operations amounted to $616 million for the reported quarter, down from $1,010 million.
Outlook
For 2024, Newmont expects attributable gold production of roughly 6.9 million ounces. The company also expects gold CAS of $1,050 per ounce and AISC of $1,400 per ounce.
Price Performance
Newmont’s shares have lost 24.5% in the past year compared with a 2.3% decline of the industry.
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Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the basic materials space include United States Steel Corporation X, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.
United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 62.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 33.7% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 128.8% in a year.
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