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Royal Gold (RGLD) Up 15% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Royal Gold (RGLD - Free Report) . Shares have added about 15% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Royal Gold due for a pullback? 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 Earnings Top Estimates in December-end Quarter
Royal Gold 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.55% 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 an F. Charting a somewhat similar path, 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 D. 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 these revisions indicates a downward shift. Notably, Royal Gold has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Royal Gold (RGLD) Up 15% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Royal Gold (RGLD - Free Report) . Shares have added about 15% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Royal Gold due for a pullback? 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 Earnings Top Estimates in December-end Quarter
Royal Gold 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.55% 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 an F. Charting a somewhat similar path, 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 D. 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 these revisions indicates a downward shift. Notably, Royal Gold has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.