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Royal Gold (RGLD) Earnings Surpass Estimates in Q1, Up Y/Y

·3 min read

Royal Gold, Inc. RGLD reported adjusted earnings per share (EPS) of 99 cents in first-quarter 2022, beating the Zacks Consensus Estimate of 83 cents. The bottom line increased 18% year over year.

Including one-time items, the company reported EPS of $1.00 compared with the prior-year quarter’s 82 cents.

The company generated revenues of $162 million, reflecting year-over-year growth of 14%. The top line missed the Zacks Consensus Estimate of $163 million. The upbeat performance can be attributed to higher gold sales at Mount Milligan and Andacollo, an increase in the average gold and copper prices, higher gold production at Cortez and contribution from the newly-acquired NX Gold stream and Red Chris royalty. However, these factors were partly offset by lower gold and silver stream sales from Pueblo Viejo.

Stream revenues were $105.3 million and royalty revenues were $57.1 million during the March-end quarter. Both stream and royalty revenues increased 10.5% and 21% year over year.

The company’s cost of sales came in at $23 million in the first quarter compared with the prior-year quarter’s $21 million.

General and administrative expenses amounted to $9 million, up 29% year over year. The adjusted EBITDA was $130 million in the reported quarter, up 15% year over year. The adjusted EBITDA margin came in at 80% compared with the prior-year quarter’s 79.6%.

Royal Gold, Inc. Price, Consensus and EPS Surprise

Royal Gold, Inc. Price, Consensus and EPS Surprise
Royal Gold, Inc. Price, Consensus and EPS Surprise

Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote

Financial Position

Net cash from operating activities was $101 million in the first quarter compared with the prior-year quarter’s $92 million. Royal Gold ended the quarter with cash and cash equivalents of around $184 million compared with $144 million at the end of 2021.

Price Performance

In the past year, shares of Royal Gold have gained 10.5% against the industry’s loss of 7.8%.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Stocks to Consider

Royal Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD, AdvanSix Inc. ASIX and Commercial Metals Company CMC. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised upward by 32.5% over the last 60 days.

Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 2.5%. STLD has rallied around 45% in a year.

AdvanSix has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus mark for current-year earnings has moved upward by 31.9% in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 23.6%. ASIX has surged around 53% in a year.

Commercial Metals has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised upward by 31.9% over the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 16%. CMC has appreciated around 31% in a year.


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