Newmont (NEM) to Report Q1 Earnings: What's in the Offing?
Newmont Corporation NEM is scheduled to report first-quarter 2023 results before the opening bell on Apr 27.
The gold miner missed the Zacks Consensus Estimate in each of the trailing four quarters. For this timeframe, the company delivered a negative earnings surprise of roughly 9.9%, on average. Newmont posted a negative earnings surprise of 6.4% in the last reported quarter. The company’s first-quarter results are expected to reflect improved grades across a number of mines. Improved gold prices and lower costs are also likely to have aided its performance.
The stock has lost 33.4% in the past year compared with the industry’s 15.5% decline.
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Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Newmont this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Newmont is +2.26%. The Zacks Consensus Estimate for the first quarter is currently pegged at 33 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Newmont currently carries a Zacks Rank #3.
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter consolidated revenues for Newmont is currently pegged at $2,855 million, which calls for a decline of around 5.6% year over year.
The Zacks Consensus Estimate for first-quarter average realized prices of gold stands at $1,786, suggesting a 1.6% rise on a sequential comparison basis. The same for the attributable gold production is pegged at 1.35 million ounces, indicating a roughly 17% sequential decline and a 0.6% year over year rise.
Some Factors to Watch For
Continued strong production performance across a number of mines is expected to have supported the company’s first-quarter results. In South America, Cerro Negro is expected to continue to have delivered improved productivity, leading to higher production in the first quarter. Yanacocha is also expected to have continued strong performance. However, production in the Merian mine is likely to have been impacted by lower ore grade.
In North America, Musselwhite and Porcupine are expected to have delivered improved productivity and grades. Eleonore is also likely to have benefited from improved productivity. However, production in Penasquito is likely to have been impacted by lower grade due to mine sequencing.
In Australia, performance at the Boddington mine is likely to have been aided by strong mill performance in the to-be-reported quarter, offset by lower production from Tanami due to lower ore grade. Strong production in Ahafo, driven by improved mining rates and higher ore grade, is also expected to have supported results in the company’s Africa operation in the March quarter.
Newmont is also expected to have benefited from its actions to boost productivity and control costs in the first quarter. Benefits of lower unit costs are likely to reflect on its performance.
Meanwhile, gold prices broke above the $1,800 per ounce level in December 2022 as signs of cooling U.S. inflation raised expectations of a less aggressive policy stance by the Federal Reserve. Prices of the yellow metal were up around 10% in the fourth quarter. The momentum continued through January 2023, with the yellow metal crossing $1,900 riding on a weaker U.S dollar.
However, gold prices lost steam in February, as strong U.S. economic data propelled yields and the U.S. dollar higher. Prices, nevertheless, rebounded strongly in March, driven by the fall in the value of the U.S. dollar after the sudden collapse of Silicon Valley Bank that led skittish investors flock to safe-haven assets. Gold gained on speculation that the banking crisis will trigger less-aggressive Federal Reserve rate hikes. Prices of the yellow metal were up nearly 8% in the first quarter.
Improved gold prices are expected to have supported Newmont’s performance in the March quarter.
Newmont Corporation Price and EPS Surprise
Newmont Corporation price-eps-surprise | Newmont Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation ALB, slated to release earnings on May 3, has an Earnings ESP of +0.80%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle’s earnings for the quarter is pegged at $6.93. ALB currently carries a Zacks Rank #3.
Axalta Coating Systems Ltd. AXTA, slated to release earnings on May 2, has an Earnings ESP of +4.35%.
The consensus estimate for Axalta Coating Systems’ earnings for the first quarter is currently pegged at 31 cents. AXTA currently carries a Zacks Rank #3.
FMC Corporation FMC, slated to release earnings on May 1, has an Earnings ESP of +0.86% and carries a Zacks Rank #2.
The consensus estimate for FMC’s first-quarter earnings has been stable in the past 60 days. The Zacks Consensus Estimate for FMC’s earnings for the quarter is pegged at $1.74.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Newmont Corporation (NEM) : Free Stock Analysis Report
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Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
