Gold.com (NYSE:GOLD) Announces Earnings Results, Misses Expectations By $0.63 EPS

Gold.com (NYSE:GOLD) released its quarterly earnings results on Wednesday. The company reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.63), RTT News reports. The business had revenue of $3.27 billion for the quarter, compared to analyst estimates of $4.81 billion. Gold.com had a net margin of 0.34% and a return on equity of 17.42%. During the same period in the prior year, the business earned ($0.04) earnings per share.

Here are the key takeaways from Gold.com’s conference call:

• Gold.com reported net income of $1.6 million, versus a year-ago loss of $0.9 million. Gross profit rose 23%, adjusted pretax net income increased 172%, and EBITDA grew 22%; revenue excluding hedging-related forward sales was up 51% year over year.
• Management described the quarter as exceptionally slow, with activity down from the prior quarter and some sales requiring lower margins. Gold and silver ounces sold were nevertheless higher year over year, while reported revenue declined 11% largely because of lower forward sales.
• The company is combining SilverTowne Mint and Sunshine Minting into a separate minting and refining segment, adding supply-chain control and capacity; refining utilization was about 65%. Management said integration is progressing and expects synergies, though stronger mint profitability depends on higher utilization.
• Cash fell to $126.8 million from $578 million at fiscal year-end, primarily reflecting lower deferred revenue and advances, while management said liquidity remains strong and precious-metal leases have been reduced to a level it considers appropriate. The board maintained the $0.20 quarterly dividend after the company paid a one-time $1 special dividend during the quarter.

Gold.com Price Performance

Shares of GOLD stock traded up $0.21 on Friday, reaching $37.73. 3,033,336 shares of the stock were exchanged, compared to its average volume of 617,051. The stock has a market cap of $1.10 billion, a PE ratio of 12.53 and a beta of 0.63. Gold.com has a one year low of $23.00 and a one year high of $66.70. The stock has a 50 day moving average price of $42.34 and a 200 day moving average price of $44.70.

Gold.com Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 2nd. Stockholders of record on Thursday, November 19th will be given a dividend of $0.20 per share. The ex-dividend date is Thursday, November 19th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.1%. Gold.com’s payout ratio is presently 26.58%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on GOLD shares. DA Davidson restated a “buy” rating and issued a $60.00 target price on shares of Gold.com in a research note on Thursday, September 3rd. Northland Securities set a $55.00 price target on shares of Gold.com in a research report on Thursday, September 3rd. Wall Street Zen lowered shares of Gold.com from a “hold” rating to a “sell” rating in a report on Saturday, October 31st. Canaccord Genuity Group lowered their price objective on shares of Gold.com from $70.00 to $65.00 and set a “buy” rating for the company in a research report on Thursday, September 3rd. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Gold.com in a research note on Monday, August 17th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Gold.com currently has an average rating of “Moderate Buy” and a consensus price target of $58.00.

Insider Activity

In other Gold.com news, major shareholder Tether Global Investments Fund purchased 100,000 shares of the stock in a transaction dated Thursday, September 3rd. The stock was bought at an average price of $39.30 per share, for a total transaction of $3,930,000.00. Following the transaction, the insider directly owned 300,000 shares in the company, valued at $11,790,000. This represents a 50.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Gregory N. Roberts sold 25,000 shares of Gold.com stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $49.36, for a total transaction of $1,234,000.00. Following the sale, the chief executive officer directly owned 28,202 shares of the company’s stock, valued at $1,392,050.72. This represents a 46.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have bought 300,000 shares of company stock valued at $11,840,113 and have sold 124,859 shares valued at $5,835,628. 16.50% of the stock is currently owned by insiders.

Gold.com Company Profile

Gold.com, Inc, together with its subsidiaries, operates as a precious metals company. It operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The Wholesale Sales & Ancillary Services segment sells gold, silver, platinum, and palladium in the form of bars, plates, powders, wafers, grains, ingots, and coins. This segment also offers complementary services, such as receiving, handling, inventorying, processing, packing, and shipping of precious metals and custom coins on a secure basis; and designs and produces minted silver products.