Newmont Mining Earnings: Profit Down

S&P 500 (NYSE:SPY) component Newmont Mining Corporation (Holding Company) (NYSE:NEM) reported its results for the third quarter. Newmont Mining explores and acquires gold properties and produces copper.

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Newmont Mining Corporation (Holding Company) Earnings Cheat Sheet

Results: Net income for Newmont Mining Corporation (Holding Company) fell to $400 million (81 cents per share) vs. $493 million (98 cents per share) a year earlier. This is a decline of 18.9% from the year-earlier quarter.

Revenue: Fell 9.6% to $2.48 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Newmont Mining Corporation (Holding Company) reported adjusted net income of 85 cents per share. By that measure, the company fell short of mean estimate of 90 cents per share. Analysts were expecting revenue of $2.52 billion.

Quoting Management: “Balanced performance from our operating portfolio allowed us to deliver results that were on track with our expectations for the quarter with strong performances at both our Nevada complex in North America and Yanacocha in Peru offset by weaker performance in our Asia Pacific region, primarily at Boddington and Tanami in Australia,” said Richard O’Brien, Chief Executive Officer. “We are also seeing clear progress on our commitment to deliver profitable ounces from new projects including our Akyem project in Ghana, which is 65% complete and proceeding on budget and on schedule to begin production in late 2013, and in Nevada where our Emigrant mine commenced production this quarter.”

Key Stats:

For two quarters in a row, the company has come in under analyst estimates. In the second quarter, it missed expectations by 35 cents with net income of 59 cents versus a mean estimate of net income of 94 cents per share.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 6.5% to $2.23 billion from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.15 a share to $1.19 over the last ninety days. For the fiscal year, the average estimate has moved down from $4 a share to $3.88 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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