Zacks Research's Q1 Earnings Estimate for Newmont

On October 22, 2024, Zacks Research updated their earnings forecast for Newmont Corporation (NYSE:NEM) for the first quarter of 2025. According to a report released on October 18, the analyst A. Barman has raised the earnings estimate to $0.65 per share, up from the previous estimate of $0.55. This positive adjustment indicates a growing confidence in the company’s financial performance. The projected earnings for Newmont for the entire fiscal year stand at $3.10 per share, with additional estimates for the second quarter of 2026 at $0.87 EPS.

Newmont's most recent quarterly earnings report was announced on July 24, where the company reported earnings per share (EPS) of $0.72. This figure exceeded analysts' predictions, which had set the consensus estimate at $0.62, resulting in a positive variance of $0.10. Furthermore, Newmont reported significant revenue of $4.40 billion, surpassing analyst expectations of $4.13 billion. However, the company faced challenges, with a negative net margin of 13.16%, although it achieved a positive return on equity of 8.35%. This quarter's revenue had increased significantly by 64.1% compared to the same period last year, when Newmont earned $0.33 per share.

In addition to Zacks Research's insights, other financial analysts have also reviewed Newmont recently. Scotiabank upgraded the company from a “sector perform” to a “sector outperform” and raised their target price from $48.00 to $59.00 as of August 19. Similarly, Bank of America and Jefferies Financial Group increased their price objectives, showing overall positive sentiment among financial analysts regarding Newmont's stock. According to MarketBeat.com, Newmont has drawn attention with five analysts giving a hold rating, ten issuing buy ratings, and three categorizing it as a strong buy. Currently, the stock has an average rating of “Moderate Buy” with a target price of $53.46.

Newmont's Stock Performance

As of Monday, Newmont's stock opened at $57.59. The stock has experienced a 12-month low of $29.42 and a high of $58.71. Investors should note Newmont's robust financial ratios, including a current ratio of 2.11, a quick ratio of 1.85, and a low debt-to-equity ratio of 0.31. The company has been performing well historically, with a 50-day moving average of $53.06 and a 200-day moving average of $46.53. With a market capitalization of $66.41 billion, Newmont has a price-to-earnings (P/E) ratio of -21.57, indicating an emphasis on future earnings potential rather than historical performance.

Institutional Ownership Trends

In the realm of institutional trading, several investors have altered their stakes in Newmont. Cetera Trust Company N.A has acquired a new holding worth approximately $705,000. Whittier Trust Co. increased its stake by 3.0%, following their recent investment. Furthermore, Robinson Value Management Ltd. raised their shares significantly by 75.3%, enhancing their total ownership substantially. Notably, approximately 68.85% of Newmont's stock is held by institutional investors, which typically indicates investor confidence in the company.

Insider Trading Activities

On the insider trading front, there have been noteworthy transactions. CEO Thomas Ronald Palmer sold 20,000 shares at an average price of $49.51 on August 1, totaling about $990,200. Following this transaction, Palmer retains 311,469 shares valued at approximately $15.42 million. In addition, EVP Peter Toth sold 3,000 shares on October 1 at $53.81 each, which raised $161,430. These sales demonstrate active trading by company executives, which may have implications for investors monitoring insider activities.

Dividend Announcement

Newmont also announced a quarterly dividend recently, which was distributed on September 30. Investors who held shares as of September 5 received a dividend of $0.25 per share. This amounts to an annualized dividend of $1.00, representing a dividend yield of 1.74%. However, the payout ratio is currently at -37.45%, indicating that Newmont is reinvesting a portion of its earnings back into the business.

Company Overview

Newmont Corporation is engaged in the exploration and production of gold and also explores for other minerals such as copper, silver, zinc, and lead. The company operates in various countries including the United States, Canada, Mexico, and several others in South America and Africa. Its wide geographical presence strengthens its market position in the minerals sector.

Zacks, Earnings, Estimates