Newmont Mining Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Newmont Mining (NYSE:NEM) will unveil its latest earnings on Thursday, November 1, 2012. Newmont Mining explores and acquires gold properties and produces copper.

Newmont Mining Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 90 cents per share, a decline of 28.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.04. Between one and three months ago, the average estimate moved down. It also has dropped from $1.01 during the last month. Analysts are projecting profit to rise by 10.4% versus last year to $3.88.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 59 cents per share against a mean estimate of 94 cents. Two quarters ago, it beat expectations by one cent with profit of $1.15.

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A Look Back: In the second quarter, profit fell 27.9% to $279 million (56 cents a share) from $387 million (77 cents a share) the year earlier, missing analyst expectations. Revenue fell 6.5% to $2.23 billion from $2.38 billion.

Stock Price Performance: Between August 2, 2012 and October 26, 2012, the stock price rose $9.69 (22.2%), from $43.62 to $53.31. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 8.8% (+$3.86) over that span. It saw one of its worst periods between February 2, 2012 and February 14, 2012 when shares fell for nine straight days, dropping 5.7% (-$3.52) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.55 billion in revenue this quarter, a decline of 6.9% from the year-ago quarter. Analysts are forecasting total revenue of $10.2 billion for the year, a decline of 1.5% from last year’s revenue of $10.36 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 5.7% in the third quarter of the last fiscal year, 8.5% in the fourth quarter of the last fiscal year and 8.8%in the first quarter before dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 17 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.23 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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