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Royal Gold (RGLD) Earnings & Revenues Beat Estimates in Q1
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Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share of $1.07 in first-quarter fiscal 2022 (ended Sep 30, 2021), beating the Zacks Consensus Estimate of 97 cents. The bottom line increased 30.5%, year over year, aided by record revenues and strong operating performance.
Including one-time items, the company reported earnings per share of $1.07 compared with the prior-year quarter’s $1.63.
The company generated record revenues of $174 million, reflecting year-over-year growth of 19%. The top-line figure surpassed the Zacks Consensus Estimate of $166 million.
Stream revenues were $115.9 million and royalty revenues were $58.5 million during the reported quarter. Higher gold sales at Mount Milligan, higher gold production at Cortez, gold sales from the newly-acquired NX Gold Stream and an increase in average copper prices contributed to the top-line performance during the quarter. These were partly offset by lower gold sales from Andacollo and decrease in average gold prices compared to the prior period.
The company’s cost of sales came in at $27 million in the fiscal first quarter, up from the prior-year quarter’s $22 million.
General and administrative expenses amounted to $7 million, down 4.4% year on year. The adjusted EBITDA was $139 million in the reported quarter, up 19% year over year. The adjusted EBITDA margin came in at 79.8%, flat year over year.
Royal Gold, Inc. Price, Consensus and EPS Surprise
Net cash from operating activities was $129.9 million in the fiscal first quarter compared with the prior-year quarter’s $94 million. Royal Gold had cash and cash equivalents of $160 million during the fiscal first quarter compared with $226 million at the end of fiscal 2021.
Outlook
For the period ended Dec 31, 2021, Royal Gold now expects stream segment and royalty sales volume to range between 180,000 and 190,000 Gold equivalent ounces (GEOs). Depreciation, depletion and amortization expense is estimated to be $525-$575 per GEO.
Price Performance
Over the past year, shares of Royal Gold have lost 17.1% compared with the industry’s decline of 27.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
Olin has an expected earnings growth rate of around 740% for the current fiscal year. The company’s shares have surged a whopping 229% over the past year.
Nucor has a projected earnings growth rate of around 583% for 2021. The company’s shares have soared 128% in a year’s time.
Bunge has an estimated earnings growth rate of around 26% for the current year. The company’s shares have appreciated 60% in the past year.
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Royal Gold (RGLD) Earnings & Revenues Beat Estimates in Q1
Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share of $1.07 in first-quarter fiscal 2022 (ended Sep 30, 2021), beating the Zacks Consensus Estimate of 97 cents. The bottom line increased 30.5%, year over year, aided by record revenues and strong operating performance.
Including one-time items, the company reported earnings per share of $1.07 compared with the prior-year quarter’s $1.63.
The company generated record revenues of $174 million, reflecting year-over-year growth of 19%. The top-line figure surpassed the Zacks Consensus Estimate of $166 million.
Stream revenues were $115.9 million and royalty revenues were $58.5 million during the reported quarter. Higher gold sales at Mount Milligan, higher gold production at Cortez, gold sales from the newly-acquired NX Gold Stream and an increase in average copper prices contributed to the top-line performance during the quarter. These were partly offset by lower gold sales from Andacollo and decrease in average gold prices compared to the prior period.
The company’s cost of sales came in at $27 million in the fiscal first quarter, up from the prior-year quarter’s $22 million.
General and administrative expenses amounted to $7 million, down 4.4% year on year. The adjusted EBITDA was $139 million in the reported quarter, up 19% year over year. The adjusted EBITDA margin came in at 79.8%, flat year over year.
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 $129.9 million in the fiscal first quarter compared with the prior-year quarter’s $94 million. Royal Gold had cash and cash equivalents of $160 million during the fiscal first quarter compared with $226 million at the end of fiscal 2021.
Outlook
For the period ended Dec 31, 2021, Royal Gold now expects stream segment and royalty sales volume to range between 180,000 and 190,000 Gold equivalent ounces (GEOs). Depreciation, depletion and amortization expense is estimated to be $525-$575 per GEO.
Price Performance
Over the past year, shares of Royal Gold have lost 17.1% compared with the industry’s decline of 27.2%.
Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Olin Corporation (OLN - Free Report) , Nucor Corporation (NUE - Free Report) and Bunge Limited (BG - Free Report) . All of these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 740% for the current fiscal year. The company’s shares have surged a whopping 229% over the past year.
Nucor has a projected earnings growth rate of around 583% for 2021. The company’s shares have soared 128% in a year’s time.
Bunge has an estimated earnings growth rate of around 26% for the current year. The company’s shares have appreciated 60% in the past year.