Do AngloGold Ashanti's (NYSE:AU) Earnings Warrant Your Attention?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in AngloGold Ashanti (NYSE:AU).

While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. AngloGold Ashanti's Improving Profits Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. Which is why EPS growth is looked upon so favourably. It is awe-striking that AngloGold Ashanti's EPS went from US$1.34 to US$4.46 in just one year.

While it's difficult to sustain growth at that level, it bodes well for the company's outlook for the future. But the key is discerning whether something profound has changed, or if this is a just a one-off boost. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of AngloGold Ashanti shareholders is that EBIT margins have grown from 26% to 40% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts. The chart below shows how the company's bottom and top lines have progressed over time.

For finer detail, click on the image. NYSE:AU Earnings and Revenue History January 31st 2026 View our latest analysis for AngloGold Ashanti Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for AngloGold Ashanti. Are AngloGold Ashanti Insiders Aligned With All Shareholders? We would not expect to see insiders owning a large percentage of a US$54b company like AngloGold Ashanti.

But we do take comfort from the fact that they are investors in the company. As a matter of fact, their holding is valued at US$42m. That's a lot of money, and no small incentive to work hard. Despite being just 0.08% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. Story Continues It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Our quick analysis into CEO remuneration would seem to indicate they are. Our analysis has discovered that the median total compensation for the CEOs of companies like AngloGold Ashanti, with market caps over US$8.0b, is about US$13m.

The AngloGold Ashanti CEO received total compensation of just US$4.6m in the year to December 2024. That looks like a modest pay packet, and may hint at a certain respect for the interests of shareholders. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally. Does AngloGold Ashanti Deserve A Spot On Your Watchlist? AngloGold Ashanti's earnings per share growth have been climbing higher at an appreciable rate.

The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The sharp increase in earnings could signal good business momentum. AngloGold Ashanti certainly ticks a few boxes, so we think it's probably well worth further consideration. You still need to take note of risks, for example - AngloGold Ashanti has 2 warning signs we think you should be aware of. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.

We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.