Goldcorp (GG) Jumps On Better than Expected Earnings

Michael Teague  |

With gold prices up nearly a percent and a quarter on Thursday, Vancouver-based Canada-based Goldcorp (GG) , the world’s largest gold miner by market-cap, was having an excellent day after releasing its earnings statement from the recently-ended third quarter.

The earnings report showed the company’s net income for Q3 at $493 million, for an adjusted $0.23 per share, on revenue of $929 million, against the prior-year period during which the company netted $498 million, or $0.61 per share on revenue of $1.28 billion. Despite the yearly decline, the company came in ahead of consensus estimates for EPS of $0.20 on while revenues were substantially short of the average of expectations of $1.07 billion.

Furthermore, the company said that there would be a delay in bringing its new Cerro Negro mine in Argentina online, while the costs to see it through could rise some $500 million from the previous January estimate of $1.35 billion.

With gold in a bear market since earlier in the year, investors were happy with the admittedly slight earnings beat, as Goldcorp’s production cost per ounce of $551 was more than double what it was at the same time last year, but still shy of expectations putting that figure at $554. Sales during the period, however, were up 5.5 percent to 652,100 ounces.

Furthermore, the company tightened forward guidance for output, to between 2.6 and 2.7 million ounces at $1,050-$1,100 per ounces, compared to prior estimates of 2.55 to 2.8 million ounces at $1,000 to $1,100 per ounces.

Shares were up over 4 percent heading towards the closing bell, at $26.67.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.


Discover: Trending Events

United Nations
Blockchain for Europe
Humanity 2.0
World Economic Forum

Companies

Symbol Name Price Change % Volume
GNZUF Guangzhou Automobile Group Co. Ltd. 1.07 -0.06 -5.31 6,120

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

Blockchain in Fintech - Discussion at the EU Parliament

From the recent Blockchain For Europe Summit in Brussels: Panel on Financial Market Infrastructure