Alio Gold Misses Consensus on 4th Quarter Earnings

GuruFocus.com

- By Alberto Abaterusso

Alio Gold Inc. (ALO) closed week No. 8 down 1.14% on the New York Stock Exchange American to $2.61.

During the week due to the fourth quarter fiscal 2017 results, Alio Gold missed consensus on earnings per share by 8 cents. The miner closed the reporting period showing at its income statement's bottom line a loss of 6 cents per share and the miss generated a 400% negative surprise.


Fourth quarter revenue came in at $20.59 million, a 33.5% decline on a year over year basis. One year ago, fourth quarter revenue was $30.98 million. The miner attributed the decline in revenue to a lower volume of gold placed on the market.

Alio Gold missed expectations on quarterly revenue by $6.41 million.

The company also reported financial figures for the entire year of fiscal 2017. Here are the most important ones:

Operating cash flow decreased by 61.7% to $13.07 million in 2017 from $34.082 million reported last year by Alio Gold for full fiscal 2016.

During the year, Alio Gold invested something like $38.2 million to develop the Ana Paula project and the San Francisco Mine.

The balance sheet of Alio Gold has approximately $51.6 million in cash on hand and securities as of Dec. 30, 2017. Fixed assets are valued $51.6 million, the current assets exceed current liabilities with $61.7 million. Alio Gold is a debt free company.

Greg McCunn, Alio Gold's Chief Executive Officer commented: "2017 was a transformational year for the Company. On the corporate level we rebranded the company, changed the management team and strengthened the balance sheet with a C$50 million bought deal financing."

For full fiscal 2018, the company guides a gold production of 90,000 to 100,000 ounces at an AISC averaging $1,050 an ounce. Capital expenditures are predicted at $2.5 million to $3.0 million.

For the 52-weeks through Feb. 24 Alio Gold lost 34.75% and underperformed the Van Eck Vectors Gold Miners ETF (GDX) by 25.8%. The stock is trading below the 200, 100 and 50-SMA lines. The 52 Week Range is $2.57 to $6.06.

Source: Yahoo Finance

The recommendation rating is 2.4 out of 5 and the average target price is $5.91 per share.

Disclosure: I have no positions in any security mentioned in this article.

This article first appeared on GuruFocus.