Yamana Gold Earnings: Here’s Why the Stock is Down Now

Yamana Gold, Inc. (NYSE:AUY) 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 0.73%.

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Yamana Gold, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36% to $0.16 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Decreased 4.44% to $534.87 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Yamana Gold, Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $564.56 million.

Quoting Management: “We were able to deliver increased production compared to the first quarter last year while generating comparable cash flow despite lower metal prices. As in previous years, we expect sequential quarter-over-quarter increases in production and decreases in costs in 2013. This should give us another year in a trend of increasing cash flows,” said Peter Marrone, Chairman and Chief Executive Officer. “With the recent decline in metals prices, we are further evaluating our operations with the aim to actively bring down costs, preserve margin and maximize profitability.”

Key Stats (on next page)…

Revenue decreased 15.03% from $629.51 million in the previous quarter. EPS decreased 38.46% from $0.26 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 $0.29 to a profit $0.18. For the current year, the average estimate has moved down from a profit of $1.27 to a profit of $0.88 over the last ninety days.

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