Barrick Gold Earnings: Here’s Why the Stock is Rising Now

Barrick Gold Corporation (NYSE:ABX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.09%.

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Barrick Gold Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.60% to $0.92 in the quarter versus EPS of $1.09 in the year-earlier quarter.

Revenue: Decreased 5.68% to $3.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Barrick Gold Corporation reported adjusted EPS income of $0.92 per share. By that measure, the company beat the mean analyst estimate of $0.91. It missed the average revenue estimate of $3.56 billion.

Quoting Management: “Our high quality portfolio of mines combined with our sharp focus on cost management has translated into strong quarterly financial and operating results. It is very rewarding to see that our cost reduction efforts have begun to take effect and are reflected in low all-in sustaining costs of $919 per ounce and total cash costs of only $561 per ounce this quarter. We have also further reduced total capex, exploration and all-in sustaining cost guidance for the full year,” said Jamie Sokalsky, Barrick’s President and CEO. “At Pascua-Lama, we are working to address the environmental and other regulatory requirements on the Chilean side of the project. Concurrently, we are taking a hard look at evaluating all alternatives in light of the uncertainties associated with the suspension of construction in Chile. We are committed to a disciplined approach to capital allocation, based on the principle that returns will drive production, production will not drive returns. While we remain positive on the long-term fundamentals for gold and copper, we don’t rely on higher metal prices to be the only driver of shareholder returns.”

Key Stats (on next page)…

Revenue decreased 17.95% from $4.19 billion in the previous quarter. EPS decreased 91.89% from $1.11 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 $0.94. For the current year, the average estimate has moved down from a profit of $4.83 to a profit of $3.85 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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