Centerra Gold (NYSE:CGAU) Announces Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Earnings beat: Centerra reported EPS of $0.44 versus the $0.41 consensus and revenue of $484.7M versus $399.1M, with a strong net margin of 42.18% and ROE of 12.42%.
• Market reaction and valuation: Shares fell about 3.5% to $17.41 despite the beat; the stock trades at a P/E of 6.13 with a $3.48B market cap and an average analyst target of $16.67 (consensus: Moderate Buy).
• Dividend and ownership: The company paid a $0.07 quarterly dividend ($0.28 annualized, 1.6% yield, 7.04% payout ratio) and institutional investors now own roughly 55.4% of the stock, with several funds increasing positions in the quarter.

Centerra Gold (NYSE:CGAU - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.03, Zacks reports. The business had revenue of $484.70 million for the quarter, compared to analyst estimates of $399.08 million. Centerra Gold had a return on equity of 12.42% and a net margin of 42.18%.

Centerra Gold Trading Down 3.5%

NYSE CGAU opened at $17.41 on Thursday. The stock has a market cap of $3.48 billion, a P/E ratio of 6.13, a price-to-earnings-growth ratio of 1.18 and a beta of 0.90. Centerra Gold has a fifty-two week low of $6.30 and a fifty-two week high of $21.17. The stock has a 50 day simple moving average of $18.53 and a two-hundred day simple moving average of $15.86. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.65 and a current ratio of 2.39.

Centerra Gold Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were issued a $0.07 dividend. The ex-dividend date was Thursday, March 12th. This represents a $0.28 annualized dividend and a yield of 1.6%. Centerra Gold's dividend payout ratio (DPR) is 7.04%.

Hedge Funds Weigh In On Centerra Gold

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Virtu Financial LLC purchased a new stake in Centerra Gold in the fourth quarter worth $312,000. Mackenzie Financial Corp increased its position in Centerra Gold by 677.1% during the 4th quarter. Mackenzie Financial Corp now owns 1,264,565 shares of the company's stock valued at $18,300,000 after purchasing an additional 1,101,830 shares during the period. XTX Topco Ltd raised its holdings in Centerra Gold by 291.8% in the 4th quarter. XTX Topco Ltd now owns 77,301 shares of the company's stock worth $1,111,000 after purchasing an additional 57,569 shares in the last quarter. Voloridge Investment Management LLC bought a new position in Centerra Gold in the 4th quarter worth $939,000. Finally, Numerai GP LLC lifted its position in shares of Centerra Gold by 133.2% in the 4th quarter. Numerai GP LLC now owns 23,496 shares of the company's stock worth $338,000 after purchasing an additional 13,421 shares during the period. Institutional investors own 55.40% of the company's stock.

Analyst Ratings Changes

CGAU has been the subject of several recent research reports. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Centerra Gold in a research report on Wednesday, February 4th. Scotiabank lifted their target price on shares of Centerra Gold from $19.00 to $21.00 and gave the stock a "sector outperform" rating in a research note on Wednesday, April 22nd. Wall Street Zen lowered shares of Centerra Gold from a "strong-buy" rating to a "buy" rating in a report on Saturday, April 25th. Weiss Ratings reiterated a "buy (b)" rating on shares of Centerra Gold in a report on Friday, March 27th. Finally, Zacks Research cut shares of Centerra Gold from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Centerra Gold presently has an average rating of "Moderate Buy" and an average price target of $16.67.

About Centerra Gold

Centerra Gold Inc is a gold mining company incorporated in Canada and headquartered in Toronto. The company specializes in the exploration, development and operation of precious metals properties, with a focus on gold production. Centerra's portfolio includes the Mount Milligan mine in British Columbia, Canada, and the Otjikoto mine in Namibia. Both operations produce gold and copper concentrates and employ modern mining methods and processing facilities to optimize recovery rates and minimize environmental impact.

In addition to its producing assets, Centerra is advancing the development of its Greenstone Gold Project in Ontario, Canada, which, upon completion, is expected to become one of Canada's largest gold mines.