IAMGOLD Earnings: Here’s Why Investors Like These Results

IAMGOLD Corp. (NYSE:IAG) 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 0.19%.

IAMGOLD Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 60% to $0.08 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Decreased 26.67% to $301.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IAMGOLD Corp. reported adjusted EPS income of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $323.74 million.

Quoting Management: “The rigorous implementation of our cost cutting program, with 55% of our target achieved to date, supports our decision to lower cost guidance to $790-$840 from $850-$925,” said Steve Letwin, President and CEO. “We are very encouraged by these results and by the diligence with which we’ve seen employees at our sites working to deliver on this initiative. I’m confident that our cost cutting efforts in the second half of the year will continue to effect sustainable reductions to our cost structure.”

Key Stats (on next page)…

Revenue decreased 1.38% from $305.3 million in the previous quarter. EPS decreased 46.67% from $0.15 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 $0.13 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.54 to a profit of $0.39 over the last ninety days.

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