AngloGold Ashanti (NYSE:AU) Issues Quarterly Earnings Results

Key Points

• AngloGold Ashanti missed quarterly earnings expectations: EPS was $1.54 versus the $1.76 consensus, and revenue was $2.62 billion versus the $2.89 billion forecast. Profit rose 18% year over year, though gold output slipped.
• The company sharply cut its quarterly dividend to $0.125 per share from $0.72, an 82.6% reduction.
• AngloGold plans to invest about $900 million in mine expansions to boost production by 2030; analysts’ consensus rating remains “Buy,” with an average price target of $118.35.

AngloGold Ashanti (NYSE:AU - Get Free Report) released its quarterly earnings data on Thursday. The mining company reported $1.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.76 by ($0.22), FiscalAI reports. AngloGold Ashanti had a return on equity of 38.77% and a net margin of 32.19%. The firm had revenue of $2.62 billion for the quarter, compared to analyst estimates of $2.89 billion.

AngloGold Ashanti Trading Up 5.0%

AngloGold Ashanti stock traded up $4.40 during trading on Friday, reaching $92.96. The company had a trading volume of 3,510,141 shares, compared to its average volume of 2,346,659. AngloGold Ashanti has a 12-month low of $67.82 and a 12-month high of $129.14. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.07 and a current ratio of 2.71. The stock's 50 day moving average price is $95.71 and its two-hundred day moving average price is $96.52. The firm has a market capitalization of $46.94 billion, a price-to-earnings ratio of 10.65 and a beta of 0.72.

AngloGold Ashanti Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Friday, November 27th will be issued a $0.1250 dividend. This is a negative change from AngloGold Ashanti's previous quarterly dividend of $0.72. The ex-dividend date is Friday, November 27th. This represents a $0.50 annualized dividend and a yield of 0.5%. AngloGold Ashanti's dividend payout ratio (DPR) is presently 6.70%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on AU shares. Weiss Ratings cut AngloGold Ashanti from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, October 27th. BMO Capital Markets downgraded AngloGold Ashanti from an "outperform" rating to a "market perform" rating and set a $115.00 price objective for the company. in a research note on Thursday, September 10th. Royal Bank Of Canada raised their price objective on shares of AngloGold Ashanti from $111.00 to $119.00 and gave the company an "outperform" rating in a research report on Wednesday, September 16th. Citigroup lowered their price target on shares of AngloGold Ashanti from $130.00 to $125.00 and set a "buy" rating on the stock in a research note on Wednesday, July 15th. Finally, TD Securities assumed coverage on shares of AngloGold Ashanti in a report on Monday. They set a "strong-buy" rating on the stock. Three analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $118.35.

AngloGold Ashanti News Summary

Here are the key news stories impacting AngloGold Ashanti this week:

• Positive Sentiment: AngloGold plans to invest about $900 million in mine expansions to increase production by 2030. The spending targets existing operations and offers a potential longer-term production-growth catalyst. Article: AngloGold plans $900 million mine expansion amid stronger profit
• Positive Sentiment: Third-quarter profit rose 18%, and coverage of the earnings call highlighted strong free cash flow, providing some support despite weaker production. Article: AngloGold Profit Up 18% as Gold Output Slips
• Negative Sentiment: Quarterly results fell short of expectations: EPS was $1.54 versus the $1.76 consensus, while revenue of $2.62 billion was below the $2.89 billion forecast. Gold output also slipped, tempering the profit growth.
• Negative Sentiment: The company declared a quarterly dividend of $0.125 per share, an 82.6% reduction from the prior $0.72 payment. The lower payout may weigh on income-focused investors.

AngloGold Ashanti Company Profile

AngloGold Ashanti is a global gold mining company that explores for, develops and operates gold mines. Gold is its primary product, and the company also produces silver and other by-products at some operations.

The company's operations and projects span Africa, Australia and the Americas. Its portfolio includes mines and development projects in countries such as Ghana, Tanzania, Guinea, Australia, Brazil and Argentina.

AngloGold Ashanti was formed in 1998 through the consolidation of gold mining interests held by Anglo American in South Africa.

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