Newmont stock extends pullback after profit misses expectations, as costs grow faster than sales

37972 newmont stock extends pullback after profit misses expectations as costs grow faster than sales

Shares of Newmont Corp. NEM, -3.30% sank 2.1% in premarket trading Friday, after the gold miner reported first-quarter profit and sales that came up shy of forecasts, as costs increased at a faster pace than sales. Net income fell to $48 million, or 56 cents a share, from $559 million, or 70 cents a share, in the year ago period. Excluding nonrecurring items, adjusted earnings per share fell to 69 cents from 74 cents, and missed the FactSet consensus of 72 cents. Sales rose 5.3% to $3.02 billion, below the FactSet consensus of $3.07 billion, while costs applicable to sales jumped 15.1% to $1.44 billion. The company estimates COVID-19-related costs of $17 million during the quarter. The average realized gold price per ounce rose 8.1% to $1,892, while gold costs applicable to sales per ounce increased 18.4% to $890. Attributable gold product decreased 8% to 1.344 million ounces. The stock, which is headed for a fourth-straight decline after closing at a record $85.42 on April 18, has run up 24.3% year to date through Thursday, while the SPDR Materials Select Sector ETF NEM, -3.30% has slipped 1.7% and the S&P 500 SPX, -2.77% has lost 7.8%.

Source: Marketwatch

Related Posts