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Royal Gold (RGLD) Q3 Earnings Miss Estimates, Increase Y/Y
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Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share (EPS) of 76 cents in third-quarter 2023, missing the Zacks Consensus Estimate of 79 cents. The bottom line increased 7% year over year.
Including one-time items, the company reported an EPS of 75 cents compared with the prior-year quarter’s 70 cents.
RGLD generated revenues of $139 million, up 5.5% year over year. The upside was driven by higher gold production at the Cortez Legacy Zone, the new Cortez royalties acquired in 2022, and higher gold, silver and copper prices. However, these factors were offset by the suspension of operations at Peñasquito due to a strike.
Stream revenues were $99 million and royalty revenues were $40 million in the September-end quarter. Stream revenues increased 0.3% year over year, whereas royalty revenues increased 21.1%.
Royal Gold, Inc. Price, Consensus and EPS Surprise
The company’s cost of sales was $21 million in the third quarter compared with the prior-year quarter’s $23 million.
General and administrative expenses amounted to $10 million, up 32% year over year. The adjusted EBITDA was $108 million in the reported quarter, up 6.7% year over year. The adjusted EBITDA margin came in at 78% compared with the prior-year quarter’s 77%.
Financial Position
Net cash from operating activities was $98 million in the third quarter compared with the prior-year quarter’s $95 million. Royal Gold ended the quarter with cash and cash equivalents of around $103 million compared with $119 million at the end of 2022.
Outlook
The company expects stream segment sales to come at low-end, or slightly below the previously stated 320,000-345,000 GEOs for 2023.
Price Performance
In the past year, shares of Royal Gold have gained 15.6% compared with the industry’s growth of 23.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
Carpenter Technology has an average trailing four-quarter earnings surprise of 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares gained 73% in the last year.
Andersons has an average trailing four-quarter earnings surprise of 64.4%. The Zacks Consensus Estimate for ANDE’s 2023 earnings is pegged at 52 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares gained 43.2% in the last year.
Koppers has an average trailing four-quarter earnings surprise of 21.7%. The Zacks Consensus Estimate for KOP’s 2023 earnings is pegged at $1.27 per share. Earnings estimates have been unchanged in the past 60 days. KOP’s shares gained 47.4% in the last year.
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Royal Gold (RGLD) Q3 Earnings Miss Estimates, Increase Y/Y
Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share (EPS) of 76 cents in third-quarter 2023, missing the Zacks Consensus Estimate of 79 cents. The bottom line increased 7% year over year.
Including one-time items, the company reported an EPS of 75 cents compared with the prior-year quarter’s 70 cents.
RGLD generated revenues of $139 million, up 5.5% year over year. The upside was driven by higher gold production at the Cortez Legacy Zone, the new Cortez royalties acquired in 2022, and higher gold, silver and copper prices. However, these factors were offset by the suspension of operations at Peñasquito due to a strike.
Stream revenues were $99 million and royalty revenues were $40 million in the September-end quarter. Stream revenues increased 0.3% year over year, whereas royalty revenues increased 21.1%.
Royal Gold, Inc. Price, Consensus and EPS Surprise
Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote
The company’s cost of sales was $21 million in the third quarter compared with the prior-year quarter’s $23 million.
General and administrative expenses amounted to $10 million, up 32% year over year. The adjusted EBITDA was $108 million in the reported quarter, up 6.7% year over year. The adjusted EBITDA margin came in at 78% compared with the prior-year quarter’s 77%.
Financial Position
Net cash from operating activities was $98 million in the third quarter compared with the prior-year quarter’s $95 million. Royal Gold ended the quarter with cash and cash equivalents of around $103 million compared with $119 million at the end of 2022.
Outlook
The company expects stream segment sales to come at low-end, or slightly below the previously stated 320,000-345,000 GEOs for 2023.
Price Performance
In the past year, shares of Royal Gold have gained 15.6% compared with the industry’s growth of 23.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , The Andersons Inc. (ANDE - Free Report) , and Koppers Holdings Inc. (KOP - Free Report) . CRS sports a Zacks Rank #1 (Strong Buy) at present, and ANDE and KOP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares gained 73% in the last year.
Andersons has an average trailing four-quarter earnings surprise of 64.4%. The Zacks Consensus Estimate for ANDE’s 2023 earnings is pegged at 52 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares gained 43.2% in the last year.
Koppers has an average trailing four-quarter earnings surprise of 21.7%. The Zacks Consensus Estimate for KOP’s 2023 earnings is pegged at $1.27 per share. Earnings estimates have been unchanged in the past 60 days. KOP’s shares gained 47.4% in the last year.