Newmont Corporation (NEM), headquartered in Denver, Colorado, is a leading gold mining company in the U.S. With a market cap of $48 billion, Newmont plays a crucial role in the global mining industry, producing gold, copper, silver, zinc, and lead. The company is expected to announce its fiscal Q2 earnings for 2024 on Thursday, July 18.
Ahead of the event, analysts expect Newmont to report a profit of $0.52 per share, a 57.6% jump from $0.33 per share in the year-ago quarter. However, the company has surpassed Wall Street’s bottom-line estimates in just one of the last four quarters while missing on three occasions.
Its adjusted earnings of $0.55 per share for the last reported quarter surged 37.5% year over year, beating the consensus estimate by 57.1%. This success can be credited to its robust production, higher prices, and lower operating expenses in Q1.
For fiscal 2024, analysts expect Newmont to report an EPS of $2.48, up 54% from $1.61 in fiscal 2023. Fiscal 2025 EPS is expected to grow 25% annually to $3.10.
NEM stock has rallied marginally on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 14.9% gains while edging past the S&P 500 Material Sector SPDR Fund’s (XLB) 1.7% return over the same time frame.
Shares of Newmont surged by 12.5% following the release of its Q1 earnings results on April 25. The company exceeded Wall Street's earnings expectations and confirmed its 2024 production forecast of 6.9 million ounces of gold. With a leading portfolio of Tier 1 gold and copper operations, the company is well-positioned to meet its full-year guidance and leverage synergies and productivity improvements across its operations.
Further, in Q1, Newmont revealed that it had agreed to sell its stream credit and offtake agreements for the Fruta del Norte gold mine in Ecuador to Lundin Gold for $330 million. The payment will be made in two installments: $180 million upon closing by June 28, 2024, and $150 million by September 30, 2024. This sale supports Newmont's strategy to generate $2 billion in near-term cash improvements through portfolio optimization, aiming to strengthen profitability and resilience.
The consensus opinion on Newmont stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, eight advise a “Strong Buy” rating, one recommends a “Moderate Buy,” and seven suggest a “Hold” rating. This configuration is slightly bullish from a month ago when six analysts recommended a “Strong Buy.”
The average analyst price target for Newmont is $50.02, indicating a potential upside of 20.1% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
