How did the earnings season for gold mining ETFs look in Q1?

The gold mining space remained moderate after mixed to bearish first-quarter earnings reports. Below are the first-quarter earnings results Barrick Gold Corp ABX- Goldcorp Inc. GG and Newmont Mining Corp. NEM. Of the trio, Barrick was the first to report financial results (read: Why Gold Mining ETFs Are Rising).

Let’s take a closer look at this (read: A Guide to Investing in Gold Mining ETFs).

Newmont Q1 earnings in focus

Gold mining giant Newmont Mining Corporation reported net income from continuing operations of $170 million, or 32 cents per share, in the first quarter of 2018, more than doubling from net income of $70 million, or 13 cents, reported a year earlier. Net income in the reported quarter was boosted by higher realized gold prices.

Excluding non-recurring items, adjusted earnings were 35 cents per share for the quarter, which beat the Zacks Consensus Estimate of 33 cents. Newmont reported revenues of $1,817 million, up about 7.5% year over year. However, the amount missed the Zacks Consensus Estimate of $1,847.2 million. The stock gained 0.7% in the key trading session of April 26.

Goldcorp Q1 earnings in focus

Goldcorp reported Q1 results after the market closed on April 25. Reduced production, sales volume and net income weighed on the stock, which fell about 2.1% in the key trading session on April 26.

Net income of $67 million, or 8 cents per share, for the first quarter of 2018 compared to $170 million, or 20 cents, reported a year earlier. Earnings missed the Zacks Consensus Estimate of 11 cents.

Goldcorp reported revenues of $846 million in the first quarter, down about 0.8% year over year. The figure also missed the Zacks Consensus Estimate of $869 million. Gold sales fell about 14% year over year to 466,000 ounces in the first quarter.

Barrick Gold’s Q1 results in the spotlight

Barrick Gold Corp. reported net income (attributable to shareholders) of $158 million, or 14 cents per share, in the first quarter of 2018, compared with $679 million, or 58 cents, a year earlier.

Excluding non-recurring items, adjusted net income was 15 cents per share for the quarter, which was in line with the Zacks Consensus Estimate. Revenues declined about 10.2% year over year to $1,790 million in the first quarter. However, the figure beat the Zacks Consensus Estimate of $1,764.9 million. The fund has gained about 5.4% (as of April 26, 2018) since the earnings announcement on April 23 after the market close.

The Impact of ETFs

The companies mentioned have significant exposure in large cap funds such as VanEck Vectors Gold Miners ETF GDX, iShares MSCI Global Gold Miners ETF RING, PowerShares Global Gold & Precious Metals ETF Dog and Sprott Gold Miners ETF SGDM (see all material ETFs here).

In PSAU, ABX (8.7%), NEM (8.15%) and GG (6.76%) occupy the top three positions. RING invests over 16% in NEM and over 11% in ABX, while GG takes 8.72% (read: 3 ETFs under $20 that offer great growth potential).

In GDX, NEM, ABX and GG also have 11.54%, 8.04% and 7.02% stakes, respectively. SGDM invests about 11.39% in NEM, 11.14% in GG and 4.56% in ABX. PSAU, RING, GDX and SGDM have added about 1%, 0.3%, 0.8% and 0.5% since April 23, 2018.

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VANECK-GOLD MNR (GDX): ETF Research Reports

SPROTT-GOLD MNR (SGDM): ETF Research Reports

ISHARS-M GL GLD (RING): ETF Research Reports

PWRSH-GLBL GOLD (PSAU): ETF Research Reports

Newmont Mining Corporation (NEM): Free Stock Analysis Report

Barrick Gold Corporation (ABX): Free Stock Analysis Report

Goldcorp Inc. (GG): Free Stock Analysis Report

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