Newmont Corporation (NEM) is set to announce its third-quarter 2023 earnings before the opening bell on October 26. As investors eagerly await these results, let’s examine some key factors that could impact the company’s performance and what analysts are expecting.
Analyst Estimates and Revenues
According to the Zacks Consensus Estimate, Newmont is projected to report consolidated revenues of $3.199 billion for the third quarter, reflecting a year-over-year increase of around 21.5%.
Strong Production Performance and Cost Management
Newmont is expected to have benefitted from strong production performance across several mines, particularly in South America and North America. Mines like Cerro Negro and Yanacocha are anticipated to have delivered improved productivity and higher grades, driving production growth. Additionally, the company’s actions to boost productivity and control costs are likely to have positively impacted its performance.
Impact of Gold Prices
Globally, gold prices experienced a decline in the second quarter of 2023 due to factors such as potential interest rate hikes by the U.S. Federal Reserve, higher bond yields, and a stronger U.S. dollar. However, the yellow metal showed some strength at the start of the third quarter, only to close below the $1,900 an ounce mark as the Federal Reserve hinted at maintaining higher interest rates. The impacts of these fluctuations are expected to be reflected in Newmont’s third-quarter results.
Comparing Performance
Over the past year, Newmont’s stock has faced some challenges, losing 6.9% compared to the industry’s 16% rise. It’s important to keep an eye on how the company’s performance aligns with industry trends.
Earnings Surprise Probability
While an earnings beat is always a possibility, our model does not predict one for Newmont this season. The combination of a negative Earnings ESP (Earnings Expected Surprise Prediction) and a Zacks Rank #3 indicates a lower likelihood of an earnings beat.
Investment Opportunities
If you’re looking to invest in the basic materials sector, some companies that could potentially outperform this quarter based on our model are LyondellBasell Industries N.V. (LYB), Methanex Corporation (MEOH), and Kinross Gold Corporation (KGC). These companies exhibit positive factors that increase the chances of an earnings beat.
Keep track of upcoming earnings announcements and stay updated with the latest news in the financial markets to make informed investment decisions.
Source: Zacks Investment Research
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