Coeur Mining Earnings: Here’s Why Investors are Buying Shares Now

Coeur Mining (NYSE:CDE) had a loss 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 2.28%.

Coeur Mining Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.35 in the quarter versus EPS of $0.26 in the year-earlier quarter.

Revenue: Decreased 19.61% to $204.53 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coeur Mining reported adjusted EPS loss of $0.35 per share. By that measure, the company missed the mean analyst estimate of $-0.02. It missed the average revenue estimate of $211.29 million.

Quoting Management: Mitchell J. Krebs, Coeur’s President and Chief Executive Officer, said, “Our second quarter operating performance improved significantly compared to this year’s first quarter and last year’s fourth quarter. Palmarejo is now performing quite consistently from month-to-month. Our operations and technical teams deserve tremendous credit for the improvements at Palmarejo since late last year. Continued robust silver production from San Bartolomé and higher than planned gold production from Palmarejo are expected to offset lower than expected production levels at Rochester, which encountered poor crusher performance in the first half of the year. We remain enthusiastic about the expansion initiatives underway at Rochester, which we believe can make this long-running operation our largest cash flow generator in the next five years. The Kensington gold mine in Alaska is now demonstrating its ability to operate more consistently as planned. We expect production from Kensington to increase and unit costs to decrease significantly during the second half of the year due to higher grades. Finally, we are beginning a feasibility study on the La Preciosa project in Mexico, which is expected to be completed in mid-2014, and we will be focusing our efforts on optimizing the results of the PEA to improve the project’s economics,” Mr. Krebs added.

Key Stats (on next page)…

Revenue increased 19.05% from $171.8 million in the previous quarter. EPS decreased to $-0.35 in the quarter versus EPS of $0.08 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 $0.39 to a loss $0.20. For the current year, the average estimate has moved down from a profit of $1.24 to a loss of $0.52 over the last ninety days.

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