Goldcorp (GG) Stock Is Slumping Today on Earnings Miss
NEW YORK (TheStreet) -- Shares of Goldcorp (GG) are down 5.75% to $21.98 in late morning trading Thursday, after the company said that its fourth quarter loss more than doubled from last year, as it took a $2.3 billion impairment charge on its new Cerro Negro gold mine in Argentina.
The company reported a 26% drop year over year in profit for the quarter, as lower prices and higher costs offset a big jump in production.
Excluding the writedown and other one-time items, earnings for the fourth quarter fell to 7 cents per share from 9 cents a year prior, and trailing analysts' estimates of 12 cents per share.
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Revenue for the period also declined, falling to $835 million from the $956 million it reported in the year ago period. It missed the $999.16 million analysts expected.
But, Goldcorp had double-digit production growth in 2014 to a record production of 2.87 million ounces, while reducing all-in sustaining costs.
Canada-based Goldcorp is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the U.S., Mexico and Central and South America.
Separately, TheStreet Ratings team rates GOLDCORP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLDCORP INC (GG) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and feeble growth in its earnings per share."
- You can view the full analysis from the report here: GG Ratings Report
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