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Franco-Nevada (FNV) Q4 Earnings Top Estimates, Sales Fall Y/Y
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Franco-Nevada Corporation (FNV - Free Report) reported adjusted earnings per share (EPS) of 90 cents for the fourth quarter of 2023, up 5% from the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 80 cents.
The company generated revenues of $303 million in the reported quarter, marking a year-over-year decline of 5.3%. The downside was due to lower gas, platinum group metals and oil prices, partly offset by higher gold prices. During the December quarter, 78.7% of revenues were sourced from Precious Metal assets (65.5% gold, 10.3% silver and 2.9% platinum group metals).
The company sold 119,581 Gold Equivalent Ounces (GEOs) from precious metal assets in the reported quarter, down 7.8% from the prior-year quarter. The downside was due to lower deliveries from Cobre Panama, Candelaria and Stillwater, partially offset by higher contributions from Antapaccay, MWS and Hemlo.
In the reported quarter, adjusted EBITDA was down 3% year over year to $255 million.
Franco-Nevada Corporation Price, Consensus and EPS Surprise
At the end of 2023, the company had $1.4 billion cash in hand, up from $1.2 billion as of the end of 2022. It recorded an operating cash flow of $991 million in 2023, down from $999.5 million reported in 2022.
Franco-Nevada is debt-free and uses its free cash flow to expand the portfolio and payout dividends. FNV now has available capital of $2.4 billion.
2023 Results
Franco-Nevada reported adjusted EPS of $3.56 in 2023 compared with $3.64 in the prior year. The company’s 2023 earnings beat the Zacks Consensus Estimate of $3.46.
Sales were down 7.3% year over year to $1.22 billion. Revenues missed the Zacks Consensus Estimate of $1.24 billion.
Guidance
Franco-Nevada expects total GEOs between 480,000 and 540,000 in 2024. GEOs from precious metal assets are expected between 360,000 and 400,000. It reported total GEOs of 498,447 in 2023. The outlook reflects an expected lower oil and gas prices.
Price Performance
Franco-Nevada’s shares have lost 12.6% in the past year against the industry’s growth of 12.7%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Franco-Nevada currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 41.8% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.33 per share. Earnings estimates have moved 1% north in the past 60 days. AMR shares rallied 115.2% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.00 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 33.5% in a year.
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Franco-Nevada (FNV) Q4 Earnings Top Estimates, Sales Fall Y/Y
Franco-Nevada Corporation (FNV - Free Report) reported adjusted earnings per share (EPS) of 90 cents for the fourth quarter of 2023, up 5% from the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 80 cents.
The company generated revenues of $303 million in the reported quarter, marking a year-over-year decline of 5.3%. The downside was due to lower gas, platinum group metals and oil prices, partly offset by higher gold prices. During the December quarter, 78.7% of revenues were sourced from Precious Metal assets (65.5% gold, 10.3% silver and 2.9% platinum group metals).
The company sold 119,581 Gold Equivalent Ounces (GEOs) from precious metal assets in the reported quarter, down 7.8% from the prior-year quarter. The downside was due to lower deliveries from Cobre Panama, Candelaria and Stillwater, partially offset by higher contributions from Antapaccay, MWS and Hemlo.
In the reported quarter, adjusted EBITDA was down 3% year over year to $255 million.
Franco-Nevada Corporation Price, Consensus and EPS Surprise
Franco-Nevada Corporation price-consensus-eps-surprise-chart | Franco-Nevada Corporation Quote
Financial Position
At the end of 2023, the company had $1.4 billion cash in hand, up from $1.2 billion as of the end of 2022. It recorded an operating cash flow of $991 million in 2023, down from $999.5 million reported in 2022.
Franco-Nevada is debt-free and uses its free cash flow to expand the portfolio and payout dividends. FNV now has available capital of $2.4 billion.
2023 Results
Franco-Nevada reported adjusted EPS of $3.56 in 2023 compared with $3.64 in the prior year. The company’s 2023 earnings beat the Zacks Consensus Estimate of $3.46.
Sales were down 7.3% year over year to $1.22 billion. Revenues missed the Zacks Consensus Estimate of $1.24 billion.
Guidance
Franco-Nevada expects total GEOs between 480,000 and 540,000 in 2024. GEOs from precious metal assets are expected between 360,000 and 400,000. It reported total GEOs of 498,447 in 2023. The outlook reflects an expected lower oil and gas prices.
Price Performance
Franco-Nevada’s shares have lost 12.6% in the past year against the industry’s growth of 12.7%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Franco-Nevada currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Ecolab Inc. (ECL - Free Report) , Alpha Metallurgical Resources, Inc. (AMR - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . While ECL and AMR sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 41.8% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.33 per share. Earnings estimates have moved 1% north in the past 60 days. AMR shares rallied 115.2% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.00 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 33.5% in a year.