Newmont Mining (NEM) Stock Climbs on Q2 Earnings, Revenue Beat
NEW YORK (TheStreet) -- Shares of Newmont Mining (NEM) - Get Report are gaining 3.51% to $40.67 in early-afternoon trading on Thursday after reporting second-quarter earnings and revenues that easily beat analysts' projections.
After yesterday's market close, the Greenwood Village, CO-based company reported adjusted earnings of 44 cents per share, topping analysts' estimates of 30 cents per share.
Revenue increased to $2.04 billion from $1.91 billion a year ago, and beat analysts' estimates of $1.94 billion.
Additionally, the gold miner cut its guidance for gold all-in sustaining costs to between $870 and $930 an ounce in 2016 from $880 to $940 an ounce.
BMO Capital Markets pointed out that better-than-expected production and lower costs contributed to the earnings beat, but the main drivers during the quarter were tax adjustments of 34 cents per share tied to restructuring and a loss carry back.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Newmont Mining's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: NEM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.