Sibanye Gold (NYSE:SBSW) Announces Earnings Results, Misses Expectations By $0.57 EPS

Key Points

• Sibanye Gold reported quarterly EPS of $0.69, missing the $1.26 consensus estimate by $0.57. Revenue was $2.75 billion, also below the $5.22 billion estimate.
• The stock fell 2.3% following the results and opened at $11.81, with a 52-week range of $7.36 to $21.29.
• Analyst sentiment remains mixed: Sibanye has a consensus “Hold” rating and an average price target of $16.82, while insiders own 0.05% and institutional investors own 34.93% of the shares.

Sibanye Gold (NYSE:SBSW - Get Free Report) announced its earnings results on Tuesday. The company reported $0.69 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.26 by ($0.57), reports. The company had revenue of $2.75 billion for the quarter, compared to the consensus estimate of $5.22 billion.

Sibanye Gold Stock Down 2.3%

NYSE SBSW opened at $11.81 on Tuesday. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.78 and a quick ratio of 0.86. Sibanye Gold has a 1 year low of $7.36 and a 1 year high of $21.29. The business's 50-day moving average is $9.64 and its 200 day moving average is $11.72.

Insider Buying and Selling

In other Sibanye Gold news, Director Richard Peter Menell purchased 15,000 shares of the stock in a transaction on Tuesday, June 30th. The stock was acquired at an average price of $2.19 per share, with a total value of $32,850.00. Following the transaction, the director directly owned 25,125 shares of the company's stock, valued at approximately $55,023.75. This trade represents a 148.15% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. raised its holdings in Sibanye Gold by 116.8% in the 3rd quarter. PNC Financial Services Group Inc. now owns 3,298 shares of the company's stock worth $37,000 after purchasing an additional 1,777 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Sibanye Gold by 40.3% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 3,481 shares of the company's stock worth $39,000 after acquiring an additional 1,000 shares during the period. GeoWealth Management LLC purchased a new position in shares of Sibanye Gold in the 3rd quarter valued at approximately $43,000. US Bancorp DE lifted its stake in shares of Sibanye Gold by 2,664.2% in the 3rd quarter. US Bancorp DE now owns 4,091 shares of the company's stock valued at $46,000 after purchasing an additional 3,943 shares during the period. Finally, Atlas Capital Advisors Inc. bought a new stake in shares of Sibanye Gold during the fourth quarter valued at approximately $126,000. 34.93% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

SBSW has been the topic of a number of research reports. Wall Street Zen upgraded Sibanye Gold from a "hold" rating to a "buy" rating in a research report on Saturday. Zacks Research cut Sibanye Gold from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Sibanye Gold in a research report on Friday, July 17th. Citigroup upgraded Sibanye Gold from a "neutral" rating to a "buy" rating and set a $13.50 target price for the company in a research report on Thursday, August 13th. Finally, BMO Capital Markets cut their target price on Sibanye Gold from $14.00 to $12.00 and set a "market perform" rating for the company in a research note on Tuesday, July 14th. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Sibanye Gold currently has a consensus rating of "Hold" and a consensus price target of $16.82.

Sibanye Gold Company Profile

Sibanye Gold NYSE: SBSW is a precious metals mining company headquartered in Johannesburg, South Africa. The company's core operations focus on the extraction, processing and exploration of gold. Through its South African gold mining operations, Sibanye Gold produces doré bars, gold in concentrate and carbon-in-leach product, leveraging both underground and surface mining techniques. The company also generates by-products such as uranium, copper and nickel, reflecting its commitment to maximizing resource recovery.

In addition to its South African footprint, Sibanye Gold has expanded into the platinum‐group metals (PGM) sector through its acquisition of Stillwater Mining Company in 2017.

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