Newmont (NEM) Down 12% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Newmont Corporation (NEM). Shares have lost about 12% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Newmont due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Newmont's Earnings Miss, Revenues Surpass Estimates in Q3Newmont reported third-quarter 2024 earnings from continuing operations of 76 cents per share compared with 20 cents in the year-ago quarter. Barring one-time items, adjusted earnings were 81 cents per share, up from 36 cents reported in the prior-year quarter. It lagged the Zacks Consensus Estimate of 83 cents. The company’s revenues for the third quarter were roughly $4.6 billion, up around 84.7% year over year. The figure beat the Zacks Consensus Estimate of $4.2 billion.Higher average realized gold prices and sales volumes aided Newmont's third-quarter performance, partly offset by higher unit costs of production.Operational HighlightsNewmont's attributable gold production for the third quarter was 1.67 million ounces, registering a rise of 29.4% from 1.29 million ounces reported in the same period last year.  Production was driven by increased production at Cerro Negro, increased throughput at Brucejack, higher mill utilization at Ahafo and improved production at Yanacocha. Production in the quarter was lower than our estimate of 1.72 million ounces. Average realized prices of gold rose around 31.1% year over year to $2,518 per ounce. It beat our estimate of $2,476 per ounce.Newmont reported a rise in CAS for gold, amounting to $1,207 per ounce, up 18.4% from the previous year’s levels. It was higher than our estimate of $997 per ounce. CAS also increased 5% sequentially due to a rise in direct costs at Lihir and higher direct operating costs.AISC for gold were up around 13% year over year to $1,611 per ounce. This figure topped our estimate of $1,300 per ounce.FinancialsThe company ended the quarter with cash and cash equivalents of around $3 billion, down around 5.5% year over year. At the end of the quarter, the company had a long-term debt of roughly $8.55 billion, up 53.4% year over year.The reported quarter's net cash from operating activities amounted to around $1.65 billion.GuidanceNewmont expects fourth-quarter 2024 attributable production of 1.8 million gold ounces. The company anticipates that fourth-quarter CAS will be $1,050 per ounce, with an AISC of $1,475 per ounce.How Have Estimates Been Moving Since Then?It turns out, fresh estimates flatlined during the past month.The consensus estimate has shifted 12.23% due to these changes.VGM ScoresCurrently, Newmont has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookNewmont has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks