Goldcorp Inc.GG reported net earnings of $242 million or 28 cents per share for fourth-quarter 2017 compared with $101 million or 12 cents recorded a year ago.
Barring one-time items, adjusted earnings for the quarter came in at 10 cents per share, which missed the Zacks Consensus Estimate of 11 cents.
Goldcorp recorded revenues of $853 million in the fourth quarter, down roughly 5% year over year. The figure also missed the Zacks Consensus Estimate of $870 million.
Gold sales went down around 17.6% year over year to 633,000 ounces in the fourth quarter and production fell 15.1% to 646,000 ounces.
All-in sustaining costs (AISC) were $870 per gold ounce (up roughly 16.5% year over year).
Full-Year 2017 Results
For 2017, Goldcorp reported net earnings of $658 million or 76 cents per share, up from $162 million or 19 cents per share in 2016.
Revenues went down roughly 2.5% year over year to $3,423 million.
Goldcorp Inc. Price, Consensus and EPS Surprise
At the Penasquito mine, gold production was 83,000 ounces, marking a decrease of 54.6% year over year from 183,000 ounces. AISC was $571 per ounce, up 17.2% from $487 in the year-ago quarter.
At the Cerro Negro in Argentina, gold production went up a whopping 97% to 130,000 ounces. AISC was $672 per ounce compared with $1,024 recorded in the year-ago quarter.
At the Pueblo Viejo mine, gold production was 122,000 ounces, down 3.9% year over year. AISC was $496 per ounce compared with $311 in the year-ago quarter.
Goldcorp's cash and cash equivalents rose 18.5% year over year to $186 million. The company had adjusted net debt of $2,108 million at the end of 2017 compared with $2,216 million in 2016.
The company recorded operating cash flow of $1.2 billion for 2017, compared with $800 million in 2016.
Goldcorp expects gold production of 2.5 million ounces (+/- 5%) for 2018 and AISC has been projected to further decline to roughly $800 per ounce (+/- 5%). Goldcorp stated that it continues to realize savings from its program and is aiming to achieve roughly $250 million of annual sustainable efficiencies.
Goldcorp also expects sustaining capital expenditure to be $550 million for 2018.
Goldcorp's shares have moved up 2.8% in the last three months, outperforming the 1.5% dip recorded by its industry .
Zacks Rank & Stocks to Consider
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Steel Dynamics, Inc. STLD , The Mosaic Company MOS and United States Steel Corporation X , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 36.4% over the last six months.
Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have moved up 28.7% over the past six months.
U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 64.2% over the last six months.
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