It has been about a month since the last earnings report for Royal Gold (RGLD Quick QuoteRGLD - Free Report) . Shares have added about 7.5% 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 drivers.

Royal Gold Earnings Beat Estimates in Q2, Rise Y/Y

Royal Gold reported adjusted earnings per share (EPS) of $1.25 in second-quarter 2024, beating the Zacks Consensus Estimate of $1.17. The bottom line increased 42% year over year.

Including one-time items, the company reported an EPS of $1.23 compared with the prior-year quarter’s 97 cents.

RGLD generated revenues of $174 million, up 20.8% year over year. The upside resulted primarily from higher metal prices and copper sales at Mount Milligan. Increased gold and silver production at Peñasquito also drove the results. However, the gains were partially offset by lower gold and silver sales at Pueblo Viejo.

Stream revenues were $123 million and royalty revenues were $51 million in the June-end quarter. Stream revenues increased 15.9% year over year, whereas royalty revenues improved 34.5%.

The company’s cost of sales was $24 million in the second quarter compared with the prior-year quarter’s $23 million.

General and administrative expenses amounted to $10.5 million, up 16% year over year. The adjusted EBITDA was $141 million in the reported quarter, up 23.1% year over year. The adjusted EBITDA margin came in at 81% compared with the prior-year quarter’s 80%.

Financial Position

Net cash from operating activities was $113.5 million in the second quarter compared with the prior-year quarter’s $108 million. Royal Gold ended the quarter with cash and cash equivalents of around $74 million compared with $104 million at the end of 2023.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, Royal Gold has an average Growth Score of C, a grade with the same score on the momentum front. 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 C. 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 this revision indicates a downward shift. Notably, Royal Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Royal Gold is part of the Zacks Mining - Gold industry. Over the past month, Agnico Eagle Mines (AEM Quick QuoteAEM - Free Report) , a stock from the same industry, has gained 7%. The company reported its results for the quarter ended June 2024 more than a month ago.

Agnico reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +20.9%. EPS of $1.07 for the same period compares with $0.65 a year ago.

Agnico is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of +104.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.5%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Agnico. Also, the stock has a VGM Score of B.