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How did the Evolution Mining (ASX:EVN) share price respond last earnings season?

How did the company’s shares react following its H1 FY21 result?
The post How did the Evolution Mining (ASX:EVN) share price respond last earnings season? appeared first on The Motley Fool Australia. –

The Evolution Mining Ltd (ASX: EVN) share price edged higher Wednesday ahead of its FY21 full-year results tomorrow.

No doubt, investors will be keen to go over the gold miner’s numbers for the second-half of the financial year.

The gold miner’s shares closed the day at $3.95, up 1.28%.

Let’s take a look to see how Evolution performed for the first-half of FY21 and how its share price reacted.

What did Evolution report for H1 FY21?

During mid-February, Evolution delivered its first-half result, citing record growth across its key metrics.

Here’s a summary of the financial numbers that Evolution posted for its last earnings season.

Underlying Net Profit After Tax (NPAT) up 57% to $234 million (H1 FY21 $149.1 million);

Earnings before interest, tax, depreciation and amortisation (EBITDA) up 17% to $514.6 million (H1 FY20 $441.2 million); and
Fully-franked interim dividend of 7 cents per share (50% dividend payout ratio).

Following the release, Evolution shares sunk from $4.68 on 17 February to as low as $3.79 just two weeks after. This represents a decline of almost 20% for the established gold miner.

However, investors were purchasing the company’s shares at bargain prices, sending it back up to pre-half-year reporting levels in April.

What should investors look out for this earnings season?

According to Goldman Sachs, Evolution is expected to report total FY21 revenue of $1,879.1 million. In comparison, the prior corresponding year brought in $1,946.8 million.

In addition, underlying EBITDA is forecasted to come in at $903 million, compared to $1,029.4 million in FY20.

A final dividend of 5 cents per share is almost predicated to be declared by the Evolution board.

Goldman Sachs noted the underwhelming near-term outlook on softer than expected production numbers, all-in sustaining costs (ASIC) and capital expenditure.

Evolution share price snapshot

Year-to-date, the Evolution share price has continued to tread lower, falling 20% for the period. When looking at a longer time frame, the company’s shares are down 36% over the last 12 months.

Evolution commands a market capitalisation of roughly $7.1 billion, making it the 79th largest company on the ASX.

The post How did the Evolution Mining (ASX:EVN) share price respond last earnings season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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