Kinross Gold Earnings: Here’s Why Investors are Happy Now

Kinross Gold Corporation (NYSE:KGC) 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 1.27%.

Kinross Gold Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.09% to $0.24 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 25.03% to $1.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kinross Gold Corporation reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $1.15 billion.

Quoting Management: “As promised, we remained strongly focused on operational fundamentals in the second half of 2012, and finished the year by exceeding our full-year production guidance, and meeting our full-year cost of sales guidance. While we recorded a non-cash impairment charge related to our Tasiast project, our pre-feasibility study work and recent exploration results continue to increase our confidence in Tasiast”s potential, and confirm its importance as part of our long-term future.
“Our planning and outlook for 2013 reflects our continued focus on cost control, margin improvement and free cash flow. Although our 2013 operating costs are expected to increase due to higher consumable costs and anticipated lower grades, we are pursuing every opportunity for cost reduction. We are also forecasting a reduction in capital expenditures of approximately $325 million over 2012. Our pursuit of margin and quality ounces is also reflected in our strategic decision to use conservative gold price assumptions in our mineral reserve and resource estimates, which resulted in a lower mineral resource estimate, but which targets higher margin ounces with less capital intensity.
“At Dvoinoye, we continue to make excellent progress, as we are on schedule and on budget for planned delivery of first ore to Kupol in the second half of the year. At Kupol, our site exploration team has identified a new structure with strong potential as a result of the discovery of additional mineralization at the Moroshka target.”

Key Stats (on next page)…

Revenue increased 6.96% from $1.11 billion in the previous quarter. EPS increased 9.09% from $0.22 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 $0.28 to a profit $0.24. For the current year, the average estimate has moved down from a profit of $0.76 to a profit of $0.75 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)