Newmont Q3 preview: What to expect

When Newmont (NYSE:NEM [https://seekingalpha.com/symbol/NEM]) announces its third quarter earnings on Thursday, Wall Street expects the world's biggest gold miner to post EPS of $1.45, implying a rise of 79%, while revenue is expected to increase 14.5% to $5.28 billion during the quarter.

Denver, Colorado-based Newmont beat [https://seekingalpha.com/news/4471934-newmont-routs-q2-estimates-on-surging-gold-prices-lower-mining-costs] second quarter adjusted earnings in July after a rally in bullion prices helped cushion a 4% decline in the company's attributable gold production.

Seeking Alpha analyst, Wall Street, and Seeking Alpha’s Quant ratings are bullish [https://seekingalpha.com/symbol/NEM/ratings/quant-ratings#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] on the stock and consider it a Buy and above.

BMO Capital Markets rated the stock as Outperform with a price target of $99, stating that we expect a higher sustaining capex number this quarter and for some of the Newmont-operated assets to have lower production QoQ after a very strong start to the year, while we expect some improvement QoQ to come from non-operated assets.

“NEM is optimizing its portfolio by shedding less profitable assets, improving margins, and strengthening its balance sheet, positioning itself for long-term growth,” highlighted Seeking Alpha analyst KM Capital, rating [https://seekingalpha.com/article/4829264-newmont-gold-supercycle-continues] it as Buy.

KM Capital also warned about risks, including gold price volatility, operational challenges, and limited near-term upside per Wall Street targets.

Over the last two years, NEM has beaten EPS estimates [https://seekingalpha.com/symbol/NEM/earnings/eps-surprise-summary] 75% of the time and has beaten revenue estimates 75% of the time.

Over the last three months, EPS and revenue estimates have seen eight and seven upward revisions [https://seekingalpha.com/symbol/NEM/earnings/revisions], respectively.

The stock had an impressive run, rising nearly 132% so far this year, compared to the 14.5% rise in the broader S&P 500 index.

MORE ON NEWMONT

* Newmont: Think Twice Before You Jump In Right Now [https://seekingalpha.com/article/4831138-newmont-think-twice-before-you-jump-in-right-now]
* Newmont: Gold Supercycle Continues [https://seekingalpha.com/article/4829264-newmont-gold-supercycle-continues]
* Newmont: Upgrading To A Strong Buy As Turnaround Progresses And Gold Surges [https://seekingalpha.com/article/4829081-newmont-upgrading-to-a-strong-buy-as-turnaround-progresses-and-gold-surges]
* Gold mining stocks sink as bullion suffers sharpest drop in over a decade [https://seekingalpha.com/news/4506121-gold-mining-stocks-sink-as-bullion-suffers-sharpest-drop-in-over-a-decade]
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