AuRico Gold Earnings: Here’s Why Shares are Down Now

AuRico Gold Inc (NYSE:AUQ) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.02%.

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AuRico Gold Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 66.67% to $0.04 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Decreased 42.29% to $64.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.05. It beat the average revenue estimate of $60.3 million.

Quoting Management: “We delivered another quarter of solid results, paid our first quarterly dividend and reported continued progress at the Young-Davidson mine. With the reaming of the second leg of the shaft completed in mid-April, we are well positioned for the targeted commissioning of the mid-shaft hoisting facility during the third quarter,” stated Scott Perry, President and Chief Executive Officer. He continued, “The Company’s strategy of divesting non-core, high cost assets in 2012 has established a peer leading balance sheet and a fully funded growth profile. In addition, the divestments have resulted in a significant reduction in G&A as well as the elimination of significant capital investment obligations associated with the divested assets. Going forward, we will continue to focus on delivering quality organic production growth that drives margins and free cash flow generation.”

Key Stats (on next page)…

Revenue increased 2.82% from $63.12 million in the previous quarter. EPS increased to $0.04 in the quarter versus EPS of $-0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.18 to a profit $0.05. For the current year, the average estimate has moved down from a profit of $0.4 to a profit of $0.25 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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