Allied Nevada Gold (ANV) Pops on Friday

NEW YORK (TheStreet) -- Allied Nevada Gold Corp. (ANV) closed Friday higher on heavier-than-normal trading volume. By market close, shares had added 5.4% to $4.90, and 6.2 million shares had changed hands, 27% higher than its three-month average daily volume.

The Reno, Nev.-based business is due to report fourth-quarter and full-year earnings in late February.

Analysts polled by Thomson Reuters expect quarterly net income of 3 cents a share on $92.66 million in revenue.

For fiscal 2013, consensus is for full-year per-share earnings of 28 cents and $273.06 million in revenue.

TheStreet Ratings team rates ALLIED NEVADA GOLD CORP as a Hold with a ratings score of C-. The team has this to say about their recommendation:

"We rate ALLIED NEVADA GOLD CORP (ANV) a HOLD. 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 robust revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 18.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ANV's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.01 is sturdy.
  • Net operating cash flow has significantly decreased to -$0.79 million or 105.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 62.9% when compared to the same quarter one year ago, falling from $13.40 million to $4.97 million.

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