It has been about a month since the last earnings report for Royal Gold (RGLD - Free Report) . Shares have added about 2.3% 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’s adjusted earnings per share of 36 cents per share in second-quarter fiscal 2019 (ended Dec 31, 2018) beat the Zacks Consensus Estimate by a penny. The company had reported a loss per share of 23 cents in the prior-year quarter.
Revenues of $97.6 million in the quarter declined about 14.6% from $114.3 million reported in the year-ago quarter. Revenues declined due to lower average gold, silver and copper prices as well as a drop in overall sales and production.
Royal Gold’s volume of 79,600 GEOs (Gold Equivalent Ounces) declined 11.3% from the prior-year quarter. Average gold price declined 3.8% to $1,226 per ounce from the year-ago quarter.
The company reported costs of sales of $18.2 million in the reported quarter, down from the year-ago quarter $19.8 million. General and administrative expenses contracted to $7.4 million, compared with $9.6 million a year ago. Operating profit declined 23% year over year to $31 million.
Net cash provided by operating activities was around $59 million in second-quarter 2019 compared with $76 million in the prior-year quarter. The company ended the quarter with roughly $157 million cash in hand, up from $89 million at fiscal 2018-end. As of the quarter-end, the company’s total debt was $359 million, up from $351 million at fiscal 2018-end. The company has paid dividends worth $16.4 million during the quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Currently, Royal Gold has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Royal Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.