Denver, Colorado-headquartered Newmont Corporation (NEM) produces and explores gold, copper, zinc, lead, and silver. Valued at $47.3 billion by market cap, the company boasts a portfolio of assets, opportunities, and a talented workforce in key mining regions across Africa, Australia, Latin America & the Caribbean, North America, and Papua New Guinea.
The world’s leading gold company is set to announce its fourth-quarter results after the market closes on Thursday, Feb. 20. Ahead of the event, analysts expect NEM to report a profit of $0.94 per share, up a staggering 88% from $0.50 per share in the year-ago quarter. While the company beat Wall Street’s bottom-line projections twice over the past four quarters, it missed the forecasts on two other occasions.
For the full fiscal 2024, analysts expect NEM to report EPS of $3.07, up a massive 90.7% from $1.61 in fiscal 2023. Meanwhile, its EPS is expected to increase 13.4% year-over-year to $3.48 in fiscal 2025.
NEM stock has underperformed the S&P 500 Index’s ($SPX) 22.6% gains over the past 52 weeks, with shares up 20.6% during this period. However, it outperformed the Materials Select Sector SPDR Fund’s (XLB) 7.7% gains over the same time frame.
Newmont's stock prices plummeted over 14% in the trading session after the release of its mixed Q3 results on Oct. 23. While the company sales surged 84.7% year-over-year to $4.6 billion, its adjusted EPS of $0.81 missed analysts' bottom-line expectations. The company observed a steep rise in mining costs in Australia, Canada, Peru and Papua New Guinea which impacted its margins. However, its adjusted net income of $936 million for the quarter is still up by a staggering 227.3% compared to the year-ago quarter.
Analysts’ consensus opinion on NEM stock is moderately bullish, with an overall “Moderate Buy” rating. Out of 18 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and eight give a “Hold.” NEM’s mean price target of $53.92 indicates a 30.6% potential upside from the current levels.
