We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Royal Gold (RGLD) Down 9.9% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Royal Gold (RGLD - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Royal Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Royal Gold Q1 Earnings Top, Up Y/Y On Higher Prices
Royal Gold reported adjusted earnings per share of 82 cents in first-quarter fiscal 2021 (ended Sep 30, 2020), beating the Zacks Consensus Estimate of 80 cents. The bottom-line increased 36.7% year over year.
Including one-time items, the company reported earnings per share of $1.63 compared with the prior-year quarter’s $1.07.
The company generated revenues of $147 million, reflecting year-over-year growth of 23.7%. Stream revenues increased 23% year over year to $107 million, while royalty revenues were up 25% to $40 million year over year. Gains from higher average gold, silver and copper prices contributed to this top-line growth.
Operational Highlights
Royal Gold reported volume of 76,900 GEOs (Gold Equivalent Ounces), down 4.6% from the year-earlier quarter. Average gold price was up 29.7% to $1,909 per ounce from the year-ago quarter.
The company’s cost of sales was up 10% year over year to $22 million in the fiscal first quarter, primarily on year-over-year increases in gold, silver and copper prices.
General and administrative expenses came in at $7 million, flat year on year. Adjusted EBITDA was $117 million, up from the year-ago period’s $91 million.
Financial Position
Net cash from operating activities was $94 million in the fiscal first quarter compared with the prior-year quarter’s $71 million. The company paid out dividends worth $18.4 million during fiscal first quarter. Royal Gold ended the reported quarter with $413 million cash in hand, up from the $319 million witnessed at the end of fiscal 2020.
At the end of the reported quarter, the company’s total debt was $271 million, down from the $300 million recorded at the end of fiscal 2020. As of Sep 30, 2020, Royal Gold had $725 million available and $275 million outstanding under the revolving credit facility with total liquidity of $1.1 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -9.41% due to these changes.
VGM Scores
Currently, Royal Gold has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Royal Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Royal Gold (RGLD) Down 9.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Royal Gold (RGLD - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Royal Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Royal Gold Q1 Earnings Top, Up Y/Y On Higher Prices
Royal Gold reported adjusted earnings per share of 82 cents in first-quarter fiscal 2021 (ended Sep 30, 2020), beating the Zacks Consensus Estimate of 80 cents. The bottom-line increased 36.7% year over year.
Including one-time items, the company reported earnings per share of $1.63 compared with the prior-year quarter’s $1.07.
The company generated revenues of $147 million, reflecting year-over-year growth of 23.7%. Stream revenues increased 23% year over year to $107 million, while royalty revenues were up 25% to $40 million year over year. Gains from higher average gold, silver and copper prices contributed to this top-line growth.
Operational Highlights
Royal Gold reported volume of 76,900 GEOs (Gold Equivalent Ounces), down 4.6% from the year-earlier quarter. Average gold price was up 29.7% to $1,909 per ounce from the year-ago quarter.
The company’s cost of sales was up 10% year over year to $22 million in the fiscal first quarter, primarily on year-over-year increases in gold, silver and copper prices.
General and administrative expenses came in at $7 million, flat year on year. Adjusted EBITDA was $117 million, up from the year-ago period’s $91 million.
Financial Position
Net cash from operating activities was $94 million in the fiscal first quarter compared with the prior-year quarter’s $71 million. The company paid out dividends worth $18.4 million during fiscal first quarter. Royal Gold ended the reported quarter with $413 million cash in hand, up from the $319 million witnessed at the end of fiscal 2020.
At the end of the reported quarter, the company’s total debt was $271 million, down from the $300 million recorded at the end of fiscal 2020. As of Sep 30, 2020, Royal Gold had $725 million available and $275 million outstanding under the revolving credit facility with total liquidity of $1.1 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -9.41% due to these changes.
VGM Scores
Currently, Royal Gold has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Royal Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.