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Last week, you might have seen that Newmont Corporation (NYSE:NEM) released its full-year result to the market. The early response was not positive, with shares down 2.6% to US$45.33 in the past week. The result was positive overall - although revenues of US$19b were in line with what the analysts predicted, Newmont surprised by delivering a statutory profit of US$2.92 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Newmont after the latest results.
See our latest analysis for Newmont
Following last week's earnings report, Newmont's eleven analysts are forecasting 2025 revenues to be US$18.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 43% to US$4.17. In the lead-up to this report, the analysts had been modelling revenues of US$19.2b and earnings per share (EPS) of US$4.18 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The average price target was steady at US$52.69even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Newmont analyst has a price target of US$71.26 per share, while the most pessimistic values it at US$45.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2025. This indicates a significant reduction from annual growth of 7.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.4% annually for the foreseeable future. It's pretty clear that Newmont's revenues are expected to perform substantially worse than the wider industry.