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Royal Gold (RGLD) Earnings Surpass Estimates in Q1, Dip Y/Y
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Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share (EPS) of 96 cents in first-quarter 2023, beating the Zacks Consensus Estimate of 94 cents. The bottom line, however, declined 3% year over year.
Including one-time items, the company reported EPS of 97 cents compared with the prior-year quarter’s $1.00.
The company generated revenues of $170 million, reflecting year-over-year growth of 4.9%. The upbeat performance can be attributed to higher gold and copper sales at Mount Milligan, a rise in silver sales at Khoemacau, increased gold production at Cortez and contribution from the newly-acquired royalties. However, these factors were partly offset by lower gold sales at Andacollo, and lower gold and silver production at Peñasquito.
Stream revenues were $115 million and royalty revenues were $55.4 million in the March-end quarter. On a year-over-year basis, stream revenues improved 9.2%, whereas royalty revenues decreased 3%.
The company’s cost of sales came in at $25 million in the first quarter compared with the prior-year quarter’s $23 million.
General and administrative expenses amounted to $11 million, up 22% year over year. The adjusted EBITDA was $135 million in the reported quarter, up 3.8% year over year. The adjusted EBITDA margin came in at 79% compared with the prior-year quarter’s 80%.
Royal Gold, Inc. Price, Consensus and EPS Surprise
Net cash from operating activities was $109 million in the first quarter compared with the prior-year quarter’s $101 million. Royal Gold ended the quarter with cash and cash equivalents of around $127 million compared with $184 million at the end of Mar 31, 2022.
Outlook
The company projects stream segment sales of 320,000-345,000 GEOs for 2023.
Price Performance
In the past year, shares of Royal Gold have gained 14.6% compared to the industry’s growth of 15.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. GFI has a trailing four-quarter earnings surprise of 7.7%, on average. Its shares have gained 40.4% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $15.99 for 2023. Earnings estimates have been revised 37% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 10.7%, on average. The company has gained 27.2% in a year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at $0.47 for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 90.5% in a year.
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Royal Gold (RGLD) Earnings Surpass Estimates in Q1, Dip Y/Y
Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share (EPS) of 96 cents in first-quarter 2023, beating the Zacks Consensus Estimate of 94 cents. The bottom line, however, declined 3% year over year.
Including one-time items, the company reported EPS of 97 cents compared with the prior-year quarter’s $1.00.
The company generated revenues of $170 million, reflecting year-over-year growth of 4.9%. The upbeat performance can be attributed to higher gold and copper sales at Mount Milligan, a rise in silver sales at Khoemacau, increased gold production at Cortez and contribution from the newly-acquired royalties. However, these factors were partly offset by lower gold sales at Andacollo, and lower gold and silver production at Peñasquito.
Stream revenues were $115 million and royalty revenues were $55.4 million in the March-end quarter. On a year-over-year basis, stream revenues improved 9.2%, whereas royalty revenues decreased 3%.
The company’s cost of sales came in at $25 million in the first quarter compared with the prior-year quarter’s $23 million.
General and administrative expenses amounted to $11 million, up 22% year over year. The adjusted EBITDA was $135 million in the reported quarter, up 3.8% year over year. The adjusted EBITDA margin came in at 79% compared with the prior-year quarter’s 80%.
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 $109 million in the first quarter compared with the prior-year quarter’s $101 million. Royal Gold ended the quarter with cash and cash equivalents of around $127 million compared with $184 million at the end of Mar 31, 2022.
Outlook
The company projects stream segment sales of 320,000-345,000 GEOs for 2023.
Price Performance
In the past year, shares of Royal Gold have gained 14.6% compared to the industry’s growth of 15.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Gold Fields Limited (GFI - Free Report) , Steel Dynamics (STLD - Free Report) , and Alamos Gold Inc. (AGI - Free Report) . GFI currently flaunts a Zacks Rank #1 (Strong Buy), and STLD and AGI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. GFI has a trailing four-quarter earnings surprise of 7.7%, on average. Its shares have gained 40.4% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $15.99 for 2023. Earnings estimates have been revised 37% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 10.7%, on average. The company has gained 27.2% in a year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at $0.47 for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 90.5% in a year.