Valued at a market cap of $65.5 billion, Newmont Corporation (NEM) is one of the world's largest producers of gold, with major mining operations in regions including Nevada, Peru, Australia, and Ghana. The Denver, Colorado-based company also explores and produces other metals such as copper, silver, zinc, and lead, making it a key player in the global mining industry. It is expected to announce its fiscal Q2 earnings for 2025 after the market closes on Thursday, Jul. 24.
Ahead of this event, analysts expect this gold producer to report a profit of $1.01 per share, up 40.3% from $0.72 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. In Q1, NEM’s EPS of $1.25 outpaced the forecasted figure by a notable margin of 48.8%.
For fiscal 2025, analysts expect NEM to report a profit of $4.32 per share, up 24.1% from $3.48 per share in fiscal 2024. Its EPS is expected to further grow 12% year-over-year to $4.84 in fiscal 2026.
NEM has rallied 44% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 13% rise and the Materials Select Sector SPDR Fund’s (XLB) 5% return over the same time frame.
Newmont released strong Q1 results on Apr. 23, and its shares surged 4.8% in the following trading session. The company’s revenue improved 24.5% year-over-year to $5 billion, while its adjusted EPS of $1.25 advanced 127.3% from the year-ago quarter, exceeding the consensus estimates by an impressive 48.8%. Moreover, it also reported a record Q1 free cash flow of $1.2 billion, reflecting the strength of its unrivaled Tier 1 Portfolio. A robust 40.9% year-over-year increase in average realized gold prices acted as a tailwind for the company. Additionally, Newmont remains on track to achieve its 2025 guidance and has reduced its debt by approximately $1 billion since the beginning of the year, further bolstering investor confidence.
Wall Street analysts are moderately optimistic about NEM’s stock, with a "Moderate Buy" rating overall. Among 20 analysts covering the stock, 12 recommend "Strong Buy," one suggests a "Moderate Buy,” six advise “Hold,” and one indicates a "Moderate Sell” rating. The mean price target for NEM is $65.26, which indicates an 8.7% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
