Newmont Mining (NEM) Stock Down Ahead of Q2 Earnings

Newmont Mining (NME) stock is sliding in mid-morning trading on Wednesday, as the company expects to post second quarter earnings after the closing bell today.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Newmont Mining (NEM) - Get Report are slipping by 4.23% to $39.64 in mid-morning trading on Wednesday, as the Greenwood Village, CO-based gold mining company is expected to report fiscal 2016 second quarter results after markets close today. 

Analysts surveyed by Thomson Reuters are projecting earnings of 30 cents per share on revenue of $1.94 billion. Last year, Newmont Mining posted second quarter earnings of 26 cents per share on $1.91 billion revenue. 

For August delivery, gold is down by 1.05% to $1,318.30 per ounce this afternoon. Prices hit their lowest level in three weeks today, due to higher equities, Reuters reports. 

Additionally, Deutsche Bank maintained its "buy" rating on the stock citing balance sheet flexibility, increasing production and attractive valuation. The firm added that gold reached its highest annualized rate since 2004, increasing 37% year-to-date.

"While generally possessing stronger balance sheets and better cash flow potential than Industrial Metals peers, given the strong recent rally, Newmont remains our sole Buy-rated Precious name," the firm said in an analyst note according to Barron's.

The firm believes gold and silver will continue to act as "insurance" as global economic uncertainty persists. Deutsche Bank maintained its "sell" rating on Goldcorp (GG), Franco-Nevada (FNV) and Coeur Mining (CDE) compared to the remainder of the sector, but added that valuations are increasing overall. 

FBR Capital upped its price target for Newmont Mining to $39 from $31 and maintained its "market perform" rating on the stock. 

Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:

We rate NEWMONT MINING CORP as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, 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

NEM

data by

YCharts

Loading ...