Newmont (NEM) Gears Up for Q4 Earnings: Factors At Play

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This story originally appeared on Zacks

Newmont Corporation NEM is scheduled to report fourth-quarter 2021 results before the opening bell on Feb 24.
The gold miner surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. For this timeframe, the company delivered an earnings surprise of roughly 1%, on average. Newmont posted a negative earnings surprise of 15.5% in the last reported quarter. The company’s fourth-quarter results are expected to reflect the benefits of sequentially higher gold prices and higher grades across a number of mines.

The stock has gained 17.7% in the past year compared to the industry’s 3.1% decline.

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Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Newmont this time around. The combination of a positive Earnings ESP and a Zacks Rank # 1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Newmont is + 3.59%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at 76 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Newmont currently carries a Zacks Rank # 3.

What Do the Estimates Say?

The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Newmont is currently pegged at $ 3,340 million, which calls for a decline of around 1.2% year over year.

Some Factors to Watch For

The company’s fourth-quarter results are expected to have benefited from sequentially higher realized gold prices. Gold suffered a roughly 3.5% loss in value in 2021 largely due to vaccine rollouts, optimism over economic recovery, lower investment demand and consistent dollar strength.
However, the yellow metal rallied roughly 4% in the fourth quarter amid the surge in the Omicron variant across the globe and worries over inflation. Higher average realized gold prices are expected to have aided Newmont’s performance in the fourth quarter.
Strong performance in South America is also expected to have supported the company’s fourth-quarter results. The Merian mine is likely to have delivered higher tons mined and grades in the quarter. Cerro Negro is expected to have delivered improved productivity and performance despite the coronavirus-related challenges. Yanacocha is also likely to have achieved higher grades, offsetting pandemic-induced impacts.
Strong production across Akyem and Ahafo is also expected to have driven results in the company’s Africa operation in the fourth quarter. Performance at Penasquito in North America is also likely to have been supported by higher tons mined and an improvement in recovery rates. However, pandemic-related absenteeism and a tighter Canadian labor market are expected to have affected performance across Musselwhite and Eleonore mines. In Australia, performance across Tanami and Boddington mines is likely to have been aided by higher grades in the to-be-reported quarter.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these too have the right combination of elements to post an earnings beat this quarter:
The Mosaic Company MOS, scheduled to release earnings on Feb 22, has an Earnings ESP of + 1.80% and carries a Zacks Rank # 2. You can see the complete list of today’s Zacks # 1 Rank stocks here.
The Zacks Consensus Estimate for Mosaic’s fourth-quarter earnings has been stable in the past 30 days. The consensus estimate for MOS’s earnings for the quarter is currently pegged at $ 1.95.
Sociedad Quimica y Minera de Chile SA SQM, scheduled to release earnings on Mar 2, has an Earnings ESP of + 15.68% and carries a Zacks Rank # 2.
The consensus estimate for Sociedad Quimica’s fourth-quarter earnings has been revised 12.8% upward over the past 30 days. The Zacks Consensus Estimate for SQM’s earnings for the quarter stands at 97 cents.
Element Solutions Inc ESI, slated to release earnings on Feb 22, has an Earnings ESP of + 3.45% and carries a Zacks Rank # 3.

The consensus estimate for Element Solutions’ fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for ESI’s quarterly earnings is pegged at 29 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the # 1 favorite stock to gain + 100% or more in 2021. Previous recommendations have soared + 143.0%, + 175.9%, + 498.3% and + 673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Element Solutions Inc. (ESI): Free Stock Analysis Report

Newmont Corporation (NEM): Free Stock Analysis Report

Sociedad Quimica y Minera SA (SQM): Free Stock Analysis Report

The Mosaic Company (MOS): Free Stock Analysis Report

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