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Royal Gold (RGLD) Earnings Top Estimates in December-end Quarter

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·4 min read
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Royal Gold, Inc. RGLD reported adjusted earnings per share (EPS) of $1.05 in the December-end quarter, beating the Zacks Consensus Estimate of 94 cents. The bottom line increased 14% year over year.

Including one-time items, the company reported EPS of $1.04 compared with the prior-year quarter’s 91 cents.

The company generated revenues of $169 million, reflecting year-over-year growth of 6.4%. The top line surpassed the Zacks Consensus Estimate of $164 million. This upbeat performance can be attributed to increased sales from the Khoemacau and NX Gold streams, higher royalty revenues from Cortez and higher average copper prices. However, these factors were partly offset by dismal copper stream sales from Mount Milligan and lower average gold and silver prices.

Stream revenues were $110.6 million and royalty revenues were $57.9 million during the December-end quarter.

The company’s cost of sales came in at $25 million in the October-December quarter, flat year over year.

General and administrative expenses amounted to $8 million, up 18% year on year. The adjusted EBITDA was $135 million in the reported quarter, up 6% year over year. The adjusted EBITDA margin came in at 80%, flat year over year.

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 $119 million in the December-end quarter compared with the prior-year quarter’s $99.9 million. Royal Gold ended the quarter with cash and cash equivalents of around $144 million compared with $382 million at the end of the prior-year quarter.

As of Dec 31, 2021, Royal Gold completed the change in fiscal year-end from Jun 30 to Dec 31 to match the company’s reporting and disclosure with a majority of its stream and royalty counterparties and the precious metals sector.

For the transition period ended on Dec 31, 2021, Royal Gold reported an adjusted EPS of $2.11 compared with $2.55 in the comparable period last year. Including one-time items, the bottom line came in at $2.10, down 17.3% year over year.

Royal Gold reported revenues of $343 million in the six-months period ended on Dec 31, 2021 compared with the year-ago period’s $305 million. Production of 191,300 gold equivalent ounces (GEOs) exceeded the top end of the company’s revised guidance of 180,000-190,000 GEOs.

Price Performance

In the past year, shares of Royal Gold have gained 2.7% compared with the industry’s growth of 3%.

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Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the basic materials space include Commercial Metals Company CMC, Albemarle Corporation ALB and AdvanSix Inc ASIX. While CMC and ALB sport a Zacks Rank #1 (Strong Buy), ASIX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised upward by 23% in 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 13.1%. CMC’s shares have surged around 61% in a year.

Albemarle has an expected earnings growth rate of 56.2% for the current year. ALB's consensus estimate for the current year has been revised 8.9% upward in the past 60 days.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.1%. ALB shares have gained around 38% in a year.

AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 3.2% in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 46.9%. ASIX has appreciated around 63% in a year.


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