Zacks Research Updates Newmont's Q1 Earnings Estimate

On October 18, 2024, investment analysts at Zacks Research revised their earnings estimates for Newmont Co. (NYSE:NEM). They now predict that the company will achieve earnings of $0.65 per share for the first quarter of 2025, an increase from their earlier forecast of $0.55. The expected earnings for the full fiscal year stand at $3.10 per share, highlighting a positive outlook for Newmont as they continue their operations in the basic materials sector.

Recent Earnings Performance

Newmont last reported quarterly earnings on July 24, revealing a figure of $0.72 EPS for that period. This surpassed market expectations, which were set at $0.62 EPS, indicating a better-than-anticipated performance. The company also reported revenue amounting to $4.40 billion, a figure that exceeded estimates of $4.13 billion. However, Newmont faced challenges, reflecting a negative net margin of 13.16%, balanced with a positive return on equity of 8.35%. Notably, the company marked a significant year-over-year revenue increase of 64.1%, compared to $0.33 EPS in the same quarter of the previous year.

Analyst Ratings and Price Target Changes

In addition to Zacks Research's recent updates, other financial institutions have also issued new ratings and price targets for Newmont. For instance, Scotiabank upgraded the stock from "sector perform" to "sector outperform," raising the target price from $48 to $59 on August 19. Similarly, Bank of America increased their price target from $49 to $50 and rated it as a "buy" on June 26. Jefferies Financial Group also revised their target price upwards from $54 to $63 and maintained a "buy" rating as of October 4. UBS Group raised its price target from $65 to $67, continuing to recommend a "buy". These adjustments indicate a favorable sentiment among analysts, as the overall ratings for Newmont demonstrate ten buy ratings, three strong buy ratings, and five hold ratings.

Current Stock Performance and Institutional Ownership

At the start of the trading day on October 22, Newmont's stock was priced at $57.59, showing a slight decrease of 0.1%. The company has experienced significant price volatility in the past year, with a 12-month low of $29.42 and a high of $58.71. Financial health indicators include a current ratio of 2.11, quick ratio of 1.85, and a manageable debt-to-equity ratio of 0.31. Institutional investors hold a substantial interest in Newmont, with approximately 68.85% of shares owned by various institutions.

Insider Transactions

Recent insider trading activity included CEO Thomas Ronald Palmer selling 20,000 shares at an average price of $49.51 during an August 1 transaction, totaling around $990,200. Following this sale, Palmer retains 311,469 shares valued at approximately $15.4 million. Additionally, EVP Peter Toth sold 3,000 shares for $161,430 on October 1, reflecting minor adjustments in insider holdings. The combined insider sales over the last three months have seen a total of 66,000 shares sold, amounting to $3.43 million.

Newmont’s Dividend Announcement

Newmont has also maintained its commitment to shareholders through dividends. A recent quarterly dividend of $0.25 was distributed on September 30 to shareholders on record as of September 5, translating to an annual dividend of $1.00 and a yield of 1.74%. The payout ratio currently stands at -37.45%, indicating a strategic approach to managing returns to investors while nurturing growth.

Company Overview

Newmont Corporation is a leading company in the production and exploration of gold, with additional interests in copper, silver, zinc, and lead. Newmont operates across a diverse range of countries, including the United States, Canada, Mexico, and several others, underscoring its global footprint in the mining industry.

Earnings, Stocks, Analysis