Motley Fool
All posts from Motley Fool
Motley Fool in Motley Fool,

Why Coeur Mining Inc.'s Shares Plunged 13% Today

What happened 

Shares of Coeur Mining Inc. (NYSE: CDE) fell as much as 12.7% in trading Thursday after the precious metals extractor reported its second-quarter results. At 1:30 p.m. EDT, shares were still down 10.1% for the day.

So what

Revenue fell 4.7% in the quarter to $173.4 million, and the gold and silver miner swung from net income of $14.5 million a year ago to a net loss of $11 million, or $0.06 per share. Its adjusted net loss of $0.01 per share met analysts' expectations, but there's concern that higher costs will its ability to return to profitability later in the year. 

Image source: Getty Images.

Management said they still expect full year production of between 6.5 million and 7 million ounces of silver, and between 110,000 and 120,000 ounces of gold. But it will need to ramp up production rapidly in the second half of the year to meet those goals. 

Now what

The revenue decline and the financial loss were a little disappointing given the high goals Coeur Mining has for this year. Analysts had been forecasting $0.15 per share in earnings for the 2017, which now looks like more of a stretch. If the company can pull it off, the stock can recover, but for now, investors are taking a conservative view of the company's prospects on that score.

10 stocks we like better than Coeur Mining
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Coeur Mining wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of July 6, 2017

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.