Barrick Gold Earnings: Here’s Why Shares are Up Now

Barrick Gold Corporation (NYSE:ABX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.5%.

Barrick Gold Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $1.11 in the quarter versus EPS of $1.17 in the year-earlier quarter.

Revenue: Rose 10.56% to $4.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Barrick Gold Corporation reported adjusted EPS income of $1.11 per share. By that measure, the company beat the mean analyst estimate of $1.06. It beat the average revenue estimate of $3.9 billion.

Quoting Management: “Investors are rightfully demanding fundamental change in the gold industry, and Barrick is driving this new paradigm,” said Jamie Sokalsky, President and Chief Executive Officer of Barrick. “Rising costs, poor capital allocation and the pursuit of production growth at any cost in the industry have led to declining equity valuations across the sector. The message is clear: the industry must chart a new path forward. Barrick highlighted the need for change last year, and we are increasingly taking strong action and re-focusing our business based on the principle that returns will drive production, production will not drive returns.”

Key Stats (on next page)…

Revenue increased 21.92% from $3.44 billion in the previous quarter. EPS increased 30.59% from $0.85 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 $1.22 to a profit $1.13. For the current year, the average estimate has moved down from a profit of $3.95 to a profit of $3.85 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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