Newmont Mining Corporation Stock Buy Recommendation Reiterated (NEM)
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- Despite the weak revenue results, NEM has outperformed against the industry average of 21.2%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for NEWMONT MINING CORP is rather high; currently it is at 52.80%. Regardless of NEM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.79% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.46, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.94 is weak.
- NEWMONT MINING CORP's earnings per share declined by 17.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NEWMONT MINING CORP reported lower earnings of $1.03 versus $4.62 in the prior year. This year, the market expects an improvement in earnings ($3.70 versus $1.03).
- The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 25.6% when compared to the same quarter one year ago, falling from $493.00 million to $367.00 million.
--Written by a member of TheStreet Ratings Staff. HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade
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