Randgold Resources Ltd. (NASDAQ:GOLD) announced its fourth quarter earnings for the year 2014. The renowned gold mining company got upped by 20 percent on the market following a relatively good fourth quarter. The company’s earnings per share stood at 0.54 dollars as compared to 0.88 dollars of last year. The revenue stood at 339.94 million dollars as compared to 356.16 million dollars. The company fell short of the market’s expectations of an EPS of 0.72 dollars.
The company’s full year results were fine; not as good as expected but not bad either. The earnings per share stood at 2.54 dollars upon revenue of 1.43 billion dollars as compared to the EPS 3.02 dollars upon sales of 1.27 billion dollars last year. The market estimate was 2.59 dollar EPS, while 1.13 billion dollar sales. There were few regions where improvement is desired whereas the revenues were way better than what were expected.
The company raised its dividends by 20 percent. The investors would be happy to see that and Randgold Resources Ltd. (NASDAQ:GOLD) can expect an increase in the number of investors in the oncoming months. It’s a smart move by Randgold Resources Ltd. (NASDAQ: GOLD), seeing that the decreased earnings per share might demoralize the investors; it increased the dividends in order to keep them happy and to lure some more. Because who would not want their company to be pumped by a hoard of investors?
Having said that, Randgold Resources Ltd. (NASDAQ:GOLD) shouldn’t take anything for granted because the ground beneath the company is shrinking inches by inches. The company should take the decreasing EPS as a warning and improve its whole operation because there will be a time that the losses incurred will be so large there won’t be any money left to pay as dividends.
The market estimates that the company should make 2.98 EPS on revenue of 1.17 billion dollars. The company has started off well in the year 2015 and is going strong, as it recently went up on the market by 20 percent. But every step should be taken with a precaution because there is no room for mistake. A slight hiccup on the stock market will lead to a downfall, from which the company will find it hard to rebound.
Randgold Resources Ltd. (NASDAQ:GOLD) should keep investors interested and at the same time lure new investors so that the stock price of the company stays afloat. The company needs long term investors who are serious about the stock and has faith in the company’s prospects. Also it needs a couple of good quarters to ensure the loyalty of its investors. On the other hand the company should also improve its situation by itself rather than depending on strong long term investors. When bad times come upon a company, investors are the first to bail out. Therefore, Randgold Resources Ltd. (NASDAQ:GOLD) should construct something more formidable rather than the feeble promises of investor.