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What: Shares of gold and silver miner Coeur d'Alene (NYS: CDE) fell 23% today after reporting a surprising third-quarter loss.
So what: Third-quarter revenue fell 33% to $230.6 million, which was well below the $247.5 million analysts expected. But the big shocker was the $15.8 million, or $0.18 per share, loss the company reported. On an adjusted basis the company said it made a $0.29 per share profit versus the $0.39 expectation, but production problems and write-offs pushed the GAAP results lower.
Now what: Due to issues in production the company also lowered full-year-production guidance, which never makes investors happy. Expectations have been awfully high for Coeur d'Alene heading into 2013 and this puts those lofty expectations in question. Today's news would certainly keep me from being a buyer and I'd like to see production ramp up before investing in the stock long-term.
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The article Why Coeur d'Alene Fell off a Cliff originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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