Newmont (NYSE:NEM) Releases Quarterly Earnings Results

Key Points

• Newmont's quarterly earnings exceeded expectations, reporting an EPS of $1.43 versus a consensus estimate of $0.95, and revenue of $5.32 billion compared to an estimate of $4.70 billion.
• The company declared a quarterly dividend of $0.25 per share, translating to an annualized dividend of $1.00 and a dividend yield of 1.52%.
• Several analysts upgraded their ratings on Newmont, with a current average rating of "Moderate Buy" and a price target of $62.49.

Newmont (NYSE:NEM - Get Free Report) posted its quarterly earnings results on Thursday. The basic materials company reported $1.43 EPS for the quarter, topping the consensus estimate of $0.95 by $0.48, Zacks reports. The business had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $4.70 billion. Newmont had a net margin of 30.50% and a return on equity of 18.13%. The company's quarterly revenue was up 20.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.72 earnings per share.

Newmont Price Performance

NEM traded up $4.24 on Friday, hitting $65.75. 30,891,639 shares of the company were exchanged, compared to its average volume of 11,595,961. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.70 and a current ratio of 1.98. The business's fifty day moving average is $57.05 and its 200 day moving average is $50.54. Newmont has a fifty-two week low of $36.86 and a fifty-two week high of $66.57. The firm has a market capitalization of $73.18 billion, a P/E ratio of 11.80, a price-to-earnings-growth ratio of 0.96 and a beta of 0.33.

Newmont Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Stockholders of record on Thursday, September 4th will be paid a dividend of $0.25 per share. The ex-dividend date is Thursday, September 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.52%. Newmont's dividend payout ratio (DPR) is 22.42%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on NEM shares. Royal Bank Of Canada lifted their price objective on shares of Newmont from $52.00 to $66.00 and gave the stock a "sector perform" rating in a research report on Wednesday, June 4th. Scotiabank reaffirmed a "sector perform" rating on shares of Newmont in a research report on Monday, April 14th. Stifel Nicolaus started coverage on shares of Newmont in a research report on Wednesday, July 9th. They set a "buy" rating and a $73.00 price objective for the company. Stifel Canada raised shares of Newmont to a "strong-buy" rating in a research report on Tuesday, July 8th. Finally, Cfra Research raised shares of Newmont to a "strong-buy" rating in a research report on Friday, April 25th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, eight have assigned a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $62.49.

Insider Activity

In other news, EVP Peter Toth sold 3,000 shares of the firm's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $54.09, for a total value of $162,270.00. Following the transaction, the executive vice president owned 77,526 shares of the company's stock, valued at approximately $4,193,381.34. This trade represents a 3.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Bruce R. Brook sold 2,077 shares of the firm's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $58.75, for a total transaction of $122,023.75. Following the sale, the director directly owned 43,103 shares of the company's stock, valued at approximately $2,532,301.25. The trade was a 4.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 12,231 shares of company stock worth $679,813 over the last 90 days. 0.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Newmont stock. Brighton Jones LLC increased its holdings in Newmont Corporation (NYSE:NEM - Free Report) by 15.7% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 13,606 shares of the basic materials company's stock after buying an additional 1,847 shares during the period. Brighton Jones LLC's holdings in Newmont were worth $506,000 as of its most recent filing with the SEC. Institutional investors and hedge funds own 68.85% of the company's stock.

Newmont Company Profile

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.

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