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Barrick Gold Beats on EPS But GAAP Results Lag

Wednesday - 4/24/2013, 2:00am  ET

Barrick Gold reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Barrick Gold met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
Barrick Gold tallied revenue of $3.44 billion. The six analysts polled by S&P Capital IQ anticipated a top line of $3.48 billion on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $3.64 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.92. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.88 per share. Non-GAAP EPS of $0.92 for Q1 were 16% lower than the prior-year quarter's $1.09 per share. GAAP EPS of $0.85 for Q1 were 17% lower than the prior-year quarter's $1.03 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.3%, 550 basis points worse than the prior-year quarter. Operating margin was 40.5%, 340 basis points worse than the prior-year quarter. Net margin was 24.6%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.56 billion. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $14.30 billion. The average EPS estimate is $3.56.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,049 members out of 2,174 rating the stock outperform, and 125 members rating it underperform. Among 287 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 250 give Barrick Gold a green thumbs-up, and 37 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Barrick Gold is outperform, with an average price target of $45.01.

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This article was originally published as Barrick Gold Beats on EPS But GAAP Results Lagon Fool.com

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