Gold prices for December delivery rose $1.60, or 0.14%, to $1,164.60, according to CNBC. The price of copper, another focal point of Turquoise Hill's operation, remained flat.
Turquoise Hill reported its third-quarter financial results on Monday. The company posted a net loss of $38.6 million, or 2 cents a share, in the quarter ended Sept. 30, narrower than the $94 million, or 9 cents a share, it recorded in the same period one year earlier. Revenue totaled $466 million, up from $15.7 million year-over-year.
Separately, TheStreet Ratings team rates TURQUOISE HILL RESOURCES LTD as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TURQUOISE HILL RESOURCES LTD (TRQ) 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, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TRQ's very impressive revenue growth greatly exceeded the industry average of 0.8%. Since the same quarter one year prior, revenues leaped by 7123.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- TURQUOISE HILL RESOURCES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TURQUOISE HILL RESOURCES LTD continued to lose money by earning -$0.05 versus -$0.37 in the prior year.
- TRQ's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.37 is very weak and demonstrates a lack of ability to pay short-term obligations.
- TRQ has underperformed the S&P 500 Index, declining 11.31% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for TURQUOISE HILL RESOURCES LTD is currently lower than what is desirable, coming in at 33.82%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TRQ's net profit margin of 2.15% is significantly lower than the industry average.
- You can view the full analysis from the report here: TRQ Ratings Report