AngloGold Ashanti (NYSE:AU) Posts Earnings Results, Misses Expectations By $0.22 EPS

AngloGold Ashanti (NYSE:AU) posted its quarterly earnings data on Thursday. The mining company reported $1.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.76 by ($0.22), FiscalAI reports. AngloGold Ashanti had a return on equity of 38.77% and a net margin of 32.19%. The firm had revenue of $2.62 billion for the quarter, compared to analysts’ expectations of $2.89 billion.

AngloGold Ashanti Price Performance

Shares of AU traded up $4.40 during mid-day trading on Friday, hitting $92.96. 3,510,141 shares of the stock were exchanged, compared to its average volume of 2,346,659. AngloGold Ashanti has a 52-week low of $67.82 and a 52-week high of $129.14. The company has a market cap of $46.94 billion, a PE ratio of 12.09 and a beta of 0.72. The firm has a 50-day moving average of $95.71 and a two-hundred day moving average of $96.52. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.07 and a current ratio of 2.71.

AngloGold Ashanti Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Friday, November 27th will be paid a dividend of $0.1250 per share. The ex-dividend date of this dividend is Friday, November 27th. This is a drop from AngloGold Ashanti’s previous quarterly dividend of $0.72. This represents a $0.50 dividend on an annualized basis and a yield of 0.5%. AngloGold Ashanti’s dividend payout ratio is currently 6.70%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on AU. Weiss Ratings lowered AngloGold Ashanti from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, October 27th. JPMorgan Chase & Co. decreased their target price on shares of AngloGold Ashanti from $139.00 to $138.00 and set an “overweight” rating on the stock in a research note on Friday, October 30th. Royal Bank Of Canada increased their price objective on AngloGold Ashanti from $111.00 to $119.00 and gave the stock an “outperform” rating in a report on Wednesday, September 16th. BMO Capital Markets cut shares of AngloGold Ashanti from an “outperform” rating to a “market perform” rating and set a $115.00 price target on the stock. in a research report on Thursday, September 10th. Finally, Zacks Research raised AngloGold Ashanti from a “strong sell” rating to a “hold” rating in a research report on Friday, September 11th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $118.35.

AngloGold Ashanti News Roundup

Here are the key news stories impacting AngloGold Ashanti this week:

• Positive Sentiment: AngloGold plans to invest about $900 million in mine expansions to increase production by 2030. The spending targets existing operations and offers a potential longer-term production-growth catalyst. Article: AngloGold plans $900 million mine expansion amid stronger profit
• Positive Sentiment: Third-quarter profit rose 18%, and coverage of the earnings call highlighted strong free cash flow, providing some support despite weaker production. Article: AngloGold Profit Up 18% as Gold Output Slips
• Negative Sentiment: Quarterly results fell short of expectations: EPS was $1.54 versus the $1.76 consensus, while revenue of $2.62 billion was below the $2.89 billion forecast. Gold output also slipped, tempering the profit growth.
• Negative Sentiment: The company declared a quarterly dividend of $0.125 per share, an 82.6% reduction from the prior $0.72 payment. The lower payout may weigh on income-focused investors.

AngloGold Ashanti Company Profile

AngloGold Ashanti is a global gold mining company that explores for, develops and operates gold mines. Gold is its primary product, and the company also produces silver and other by-products at some operations.

The company’s operations and projects span Africa, Australia and the Americas. Its portfolio includes mines and development projects in countries such as Ghana, Tanzania, Guinea, Australia, Brazil and Argentina.

AngloGold Ashanti was formed in 1998 through the consolidation of gold mining interests held by Anglo American in South Africa.