Newmont Corporation (NEM), headquartered in Denver, Colorado, acquires, explores, and develops mineral properties. Valued at $61.1 billion by market cap, the company produces and markets gold, copper, silver, zinc, and lead. The world’s leading gold company is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Oct. 23.
Ahead of the event, analysts expect NEM to report a profit of $0.78 per share on a diluted basis, up 116.7% from $0.36 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect NEM to report EPS of $3, up 86.3% from $1.61 in fiscal 2023. Its EPS is expected to rise 18.7% year over year to $3.56 in fiscal 2025.
NEM stock has outperformed the S&P 500’s ($SPX) 33.5% gains over the past 52 weeks, with shares up 39.5% during this period. Similarly, it outperformed the Materials Select Sector SPDR Fund’s (XLB) 21.1% gains over the same time frame.
NEM's strong performance can be attributed to the surge in gold prices driven by monetary policy easing and geopolitical tensions. The company's strategic investments in growth projects, such as Tanami Expansion 2 and Ahafo North expansion, are expected to boost production capacity and increase revenues. The acquisition of Newcrest Mining Limited has created a leading portfolio with significant synergies, expected to generate $500 million in annual benefits by 2025. With gold prices nearing $2,700, the potential for $3,000 gold this year is likely, fueled by geopolitical tensions, Federal Reserve interest rate-cuts, nearing U.S. elections, and global uncertainties. Newmont's focus on high-production tier 1 mining assets and planned sales of other projects could raise $2 billion, further enhancing shareholder value.
On Jul. 24, NEM shares closed up more than 1% after reporting its Q2 results. Its adjusted EPS of $0.72 surpassed Wall Street expectations of $0.53. The company’s revenue stood at $4.4 billion, up 64.1% year over year.
Analysts’ consensus opinion on NEM stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and five give a “Hold.” NEM’s average analyst price target is $58.28, indicating a potential upside of 10.5% from the current levels.
On the date of publication, Neha Panjwani 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.
