We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Offing for Franco-Nevada's (FNV) Q4 Earnings?
Read MoreHide Full Article
Franco-Nevada Corporation (FNV - Free Report) is set to release fourth-quarter 2018 results after the closing bell on Mar 19.
In the last reported quarter, the company delivered net earnings of $54.6 million or 29 cents per share compared to $55.3 million or 30 cents in the prior-year quarter. However, earnings outpaced the Zacks Consensus Estimate of 26 cents.
The company’s revenues came in at $171 million in the third quarter, down 0.5% year over year. The figure beat the Zacks Consensus Estimate of $164 million.
Franco-Nevada surpassed the Zacks Consensus Estimate in two of the trailing four quarters, average positive surprise being 5.50%.
Can the company surprise investors again or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
Factors at Play
Performance of the company's Oil & Gas assets remained robust in the first three quarters of 2018, with revenues doubling to $68 million from $33 million in the prior-year period. This can be attributed to the stronger oil prices and increased production from the newly-added U.S. assets. Drill activity is higher and drilling productivity has been better than expected. This will likely aid results in the to-be-reported quarter as well. Franco-Nevada, thus, anticipates revenues between $85 million and $88 million from its Oil & Gas assets for 2018, up from the previous guidance of $75-$85 million.
However, Franco-Nevada’s GEO production will be affected in the Oct-Dec quarter due to the processing of lower-grade materials at its Candelaria mine. The company, thus, expects to achieve gold production for 2018 within its previously-provided guided range, with GEOs expected to total between 445,000 and 450,000.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $162 million, depicting a year-over-year decline of 3%. Also, the Zacks Consensus Estimate for earnings at 26 cents per share reflects a year-over-year drop of 7%.
Our proven model does not conclusively show a beat for Franco-Nevada this earnings season as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Earnings ESP: Earnings ESP for Franco-Nevada is 0.00%. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 26 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Franco-Nevada currently carries a Zacks Rank #3.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Accenture plc (ACN - Free Report) has an Earnings ESP of +1.91% and holds a Zacks Rank #3.
Carnival Corporation (CCL - Free Report) has an Earnings ESP of +2.61% and carries a Zacks Rank #3.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Image: Bigstock
What's in the Offing for Franco-Nevada's (FNV) Q4 Earnings?
Franco-Nevada Corporation (FNV - Free Report) is set to release fourth-quarter 2018 results after the closing bell on Mar 19.
In the last reported quarter, the company delivered net earnings of $54.6 million or 29 cents per share compared to $55.3 million or 30 cents in the prior-year quarter. However, earnings outpaced the Zacks Consensus Estimate of 26 cents.
The company’s revenues came in at $171 million in the third quarter, down 0.5% year over year. The figure beat the Zacks Consensus Estimate of $164 million.
Franco-Nevada surpassed the Zacks Consensus Estimate in two of the trailing four quarters, average positive surprise being 5.50%.
Can the company surprise investors again or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
Factors at Play
Performance of the company's Oil & Gas assets remained robust in the first three quarters of 2018, with revenues doubling to $68 million from $33 million in the prior-year period. This can be attributed to the stronger oil prices and increased production from the newly-added U.S. assets. Drill activity is higher and drilling productivity has been better than expected. This will likely aid results in the to-be-reported quarter as well. Franco-Nevada, thus, anticipates revenues between $85 million and $88 million from its Oil & Gas assets for 2018, up from the previous guidance of $75-$85 million.
However, Franco-Nevada’s GEO production will be affected in the Oct-Dec quarter due to the processing of lower-grade materials at its Candelaria mine. The company, thus, expects to achieve gold production for 2018 within its previously-provided guided range, with GEOs expected to total between 445,000 and 450,000.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $162 million, depicting a year-over-year decline of 3%. Also, the Zacks Consensus Estimate for earnings at 26 cents per share reflects a year-over-year drop of 7%.
Franco-Nevada Corporation Price and EPS Surprise
Franco-Nevada Corporation Price and EPS Surprise | Franco-Nevada Corporation Quote
Earnings Whispers
Our proven model does not conclusively show a beat for Franco-Nevada this earnings season as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Earnings ESP: Earnings ESP for Franco-Nevada is 0.00%. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 26 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Franco-Nevada currently carries a Zacks Rank #3.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Atento S.A. has an Earnings ESP of +3.23% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture plc (ACN - Free Report) has an Earnings ESP of +1.91% and holds a Zacks Rank #3.
Carnival Corporation (CCL - Free Report) has an Earnings ESP of +2.61% and carries a Zacks Rank #3.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>