New Gold Earnings: Here’s Why Investors Don’t Like These Results

New Gold (AMEX:NGD) 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 down 1.18%.

New Gold Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 90% to $0.01 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 5.34% to $185.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: New Gold reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $209.17 million.

Quoting Management: “The second quarter delivered on planned increases in gold production at lower costs. In the second half of the year, we expect a 30 percent increase in gold production relative to the first half of 2013 at lower costs, which should result in increased earnings and cash flow,” stated Randall Oliphant, Executive Chairman. “Beyond this near-term momentum, we continue to feel well positioned for the future with our strong cash balance and robust organic project pipeline.”

Key Stats (on next page)…

EPS decreased 75% from $0.04 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 $0.10 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.41 to a profit of $0.26 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]