AuRico Gold Earnings: Here’s Why the Stock is Down Now

 
on March 26 2013 10:09 AM

AuRico Gold Inc (NYSE:AUQ) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.26%.

AuRico Gold Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 66.67% to $0.05 in the quarter versus EPS of $0.15 in the year-earlier quarter. Revenue: Decreased 40.81% to $63.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $71.73 million.

Quoting Management: “The sale of Ocampo in mid-December marked the completion of a two-year initiative aimed at improving the quality of our asset base in order to reposition the Company for low cost, quality production and deliver reliable, sustainable and consistent performance going forward. We have delivered on our commitment to shareholder friendly initiatives through the completion of a $300 million share buy-back in late January, as well the recent implementation of a peer leading ongoing dividend policy,” said Scott Perry, President and Chief Executive Officer. He continued, “At our cornerstone Young-Davidson mine, the construction of the mid-shaft crushing and loading infrastructure is advancing on schedule and once commissioned, will be the key catalyst in driving the Company’s growing production profile and cash flow steams over the next few years.”

Key Stats

Revenue increased 58.66% from $39.77 million in the previous quarter. EPS decreased 50% from $0.10 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.39 to a profit of $0.34 over the last ninety days.

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