Shares of Newmont Corp. (NYSE:NEM) dropped heavily last week following a Wednesday earnings release that, while solid, did not meet investor expectations amid a gold rally not seen since 2011.
Shares dropped as much as 19% from the stock’s pre-earnings price of $57.81 a share and have since settled about 16% lower as the security prepares to open trading around $48.27 a share on Monday.
Shares of Newmont Corp. dropped significantly following an earnings report after hours on Wednesday. (Source: TradingView)
The company reported an earnings per share of $0.81 during Q3 on estimates of $0.86. Newmont had surpassed analyst expectations in the previous three quarters, tracking back to Q4 2023, which included a considerable beat in Q1 of $0.55 earnings per share on a $0.36 estimate. In last year’s third quarter, Newmont missed earnings with a $0.36 earnings per share figure on estimates of $0.40.
A huge drop amid a huge rally
Newmont’s stock price drop came at a time when the company posted its highest quarterly profits in five years, bringing in $922 million in net income.
“The street expectations were too high,” Carey MacRury, a mining analyst at Canaccord Genuity told Yahoo Finance. “It was negative, no doubt, but I don’t think it’s as negative as what the market’s telling us today.”
Yahoo reported gold miners have struggled with higher labor and energy costs recently.
Most miners also dropped in reaction to Newmont’s earnings release, including Barrick Gold Corp. and Agnico Eagle Mines Ltd.
“There’s a potential read-through here, assuming Newmont’s takeaways are accurate, that this is a risk factor for the industry,” Josh Wolfson, a Royal Bank of Canada mining analyst, told Bloomberg.
Other experts told Bloomberg that labor costs appear to be cutting into miners’ profits.
Other miners to release earnings
Numerous other miners are expected to report earnings this week and next as companies release Q3 results.
Below is a list of upcoming earnings to look out for:
New Gold Inc., Tuesday, Oct. 29, after hours
Agnico Eagle Mines Ltd., Wednesday, Oct. 30, after hours
Eldorado Gold Corp., Thursday, Oct. 31, after hours
Centerra Gold Inc., Thursday, Oct. 31, after hours
Gold Royalty Corp., Monday, Nov. 4, after hours
Kinross Gold Corp., Tuesday, Nov. 5, after hours
Pan American Silver Corp., Tuesday, Nov. 5, after hours
Royal Gold Inc., Wednesday, Nov. 6, after hours
Alamos Gold Inc., Wednesday, Nov. 6, after hours
B2gold Corp., Wednesday, Nov. 6, after hours
Coeur Mining Inc., Wednesday, Nov. 6, after hours
Franco-Nevada Corp., Wednesday, Nov. 6, after hours
Fortuna Mining Corp., Wednesday, Nov. 6, after hours
SSR Mining Inc., Wednesday, Nov. 6, after hours
Barrick Gold Corp., Thursday, Nov. 7, before hours
Wheaton Precious Metals Corp., Thursday, Nov. 7, after hours
Galiano Gold Inc., Thursday, Nov. 7, after hours
Sandstorm Gold Ltd., Thursday, Nov. 7, after hours
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