Newmont’s first-quarter earnings came in lower than expected.
Courtesy of Newmont
Newmont mining stock was falling after the gold miner’s quarterly earnings fell short of investor expectations.
Newmont (ticker: NEM) reported adjusted earnings per share of 69 cents in the first quarter, lower than the 72 cents expected, according to analysts surveyed by FactSet. For the quarter ended in March, revenue grew by 5% to $3.02 billion as higher average realized gold prices and an increase in copper sales volumes drove sales higher, the company said. Still, sales missed the $3.08 billion estimated by analysts.
Rising costs might also be a problem for Newmont. “In 2022, an additional 5% of cost escalation is incorporated into our direct operating costs related to labor, energy, and material and supplies,” the company said.
The stock fell 2% to $75.49 in premarket trading on Friday.
Newmont stock is up 24.3% year to date, through Thursday’s close, as investors seek havens amid Russia and Ukraine war. Gold prices are up almost 7% year to date. Newmont was one of Barron’s 2021 stock picks; it gained 3.6% last year.
Out of 19 analysts tracked by FactSet, 13 are bullish on the stock, while six rate it as Hold. The average target for the stock price is $105.93, up 37% from Thursday’s close.
Write to Karishma Vanjani at [email protected]
