SerpApi.Org
Newmont (NYSE) is set to report second-quarter earnings after the market closes on July 23. Wall Street expects the gold miner to post non-GAAP EPS of $1.98 on revenue of $6.31B.
The company heads into earnings after a strong first quarter, when it reported non-GAAP EPS of $2.90, beating estimates by $0.68, while revenue climbed 45.9% year over year to $7.31B, topping expectations by $780M.
All three major rating groups remain bullish on the stock. Seeking Alpha's Quant Ratings, Seeking Alpha analysts, and Wall Street analysts all rate Newmont a Buy.
Estimate revisions have turned more cautious ahead of the results. Over the past three months, EPS estimates saw four upward and nine downward revisions, while revenue estimates recorded three upward and 10 downward revisions.
Even so, the company has a strong earnings track record, beating EPS estimates seven of the last eight quarters and revenue estimates six times during the same period.
TD Cowen recently upgraded Newmont to Buy from Hold, while trimming its price target to $127 from $129, saying the recent pullback has created a compelling entry point.
Seeking Alpha analyst The Bullionaire also rates the stock a buy, calling the stock undervalued at 0.82x NAV with a $117 price target. He said investors are effectively getting the company's Red Chris Block Cave copper-gold project "for free," with further upside possible if gold prices strengthen.
At the same time, another SA analyst noted that Newmont's $6B share buyback program could provide additional support. The company had already repurchased $2.4B of stock through Q1, putting it on pace to complete the program within about a year.
Ahead of the earnings report, Newmont shares rose ~3.20% to ~$95.42. However, the stock is down 3.55% year to date, trailing the 9.70% gain in the benchmark S&P 500 (SP500).
