Royal Gold (RGLD) Q2 Earnings Meet Estimates, Increase Y/Y
Royal Gold, Inc. RGLD reported adjusted earnings per share (EPS) of 88 cents in second-quarter 2023, in line with the Zacks Consensus Estimate. The bottom line increased 9% year over year.
Including one-time items, the company reported an EPS of 97 cents compared with the prior-year quarter’s $1.08.
RGLD generated revenues of $144 million, down 1.4% year over year. The downside resulted primarily from declines in gold sales at Andacollo, copper sales at Mount Milligan, and gold and silver production at Peñasquito. However, these factors were partly offset by higher gold production at Cortez as a result of the newly acquired royalties, and rising gold and silver prices from the prior-year quarter.
Stream revenues were $106 million and royalty revenues were $38 million during the June-end quarter. Stream revenues increased 1% year over year, while royalty revenues declined 9.5%.
Royal Gold, Inc. Price, Consensus and EPS Surprise
Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote
The company’s cost of sales was $23 million in the second quarter compared with the prior-year quarter’s $24 million.
General and administrative expenses amounted to $9.1 million, down 2.2% year over year. The adjusted EBITDA was $115 million in the reported quarter, up 0.4% year over year. The adjusted EBITDA margin came in at 80% compared with the prior-year quarter’s 78%.
Financial Position
Net cash from operating activities was $108 million in the second quarter compared with the prior-year quarter’s $120 million. Royal Gold ended the quarter with cash and cash equivalents of around $106 million compared with $281 million at the end of second-quarter 2022.
Outlook
The company continues to project stream segment sales of 320,000-345,000 GEOs for 2023.
Price Performance
In the past year, shares of Royal Gold have gained 9.7% compared with the industry’s growth of 15.8%.
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Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Orla Mining Ltd. ORLA and PPG Industries, Inc. PPG. CRS and ORLA sport a Zacks Rank #1 (Strong Buy) at present, and PPG has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.23 per share. The consensus estimate for 2023 earnings has moved 12% north in the past 60 days. Its shares gained 71% in the last year.
Orla Mining has an average trailing four-quarter earnings surprise of 85.4%. The Zacks Consensus Estimate for ORLA’s 2023 earnings is pegged at 16 cents per share. The consensus estimate for 2023 earnings has moved 7% north over the past 60 days. ORLA’s shares gained 35.7% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.3%. PPG’s shares have gained 9.5% in the past year.
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