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NEW YORK (AP) — Iamgold's stock plunged on Wednesday as the gold mining company's third-quarter results missed Wall Street's expectations.
THE SPARK: Iamgold reported on Tuesday that its quarterly net income rose 56 percent to $78 million, or 21 cents per basic share, from $50 million, or 13 cents per basic share, a year earlier. Adjusted earnings were 16 cents per basic share.
Revenue for the three months ended Sept. 30 dropped 10 percent to $386.8 million from $431.9 million.
Analysts polled by FactSet expected higher earnings of 24 cents per share on revenue of $420 million.
THE ANALYSIS: Macquarie Equities Research's Tony Lesiak cut Iamgold's rating to "Neutral" from "Outperform" and trimmed its price target to $17.50 Canadian dollars ($17.46) from $19 Canadian dollars ($18.95).
Lesiak said in a client note that Iamgold's adjusted earnings missed his forecast of 23 cents per share and that gold production was lower than expected.
SHARE ACTION: Shares of Iamgold Corp. tumbled $2.46, or 16.6 percent, to $12.40 in afternoon trading. The stock has traded in a 52-week range of $9.20 to $21.54.