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Royal Gold (RGLD) to Report Q2 Earnings: What's in Store?

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Royal Gold, Inc. (RGLD - Free Report) is slated to report second-quarter fiscal 2020 earnings results on Feb 5, after the closing bell.

Q2 Estimates

The Zacks Consensus Estimate for Royal Gold’s fiscal second-quarter earnings is currently pegged at 64 cents, suggesting growth of 77.8% from the year-ago quarter. The Zacks Consensus Estimate for revenues is currently pegged at $134 million, indicating an improvement of 37% from the prior-year quarter.

A Sneak Peek at Q1

In the last reported quarter, Royal Gold’s adjusted earnings per share of 60 cents beat the Zacks Consensus Estimate of 58 cents. The top line also marked an improvement of 161% from the year-ago quarter.

In the trailing four quarters, the company has surpassed the consensus mark on two occasions, while falling short in the other two, the negative average earnings surprise of 1.65%.
 

Royal Gold, Inc. Price and EPS Surprise

 

Royal Gold, Inc. Price and EPS Surprise

Royal Gold, Inc. price-eps-surprise | Royal Gold, Inc. Quote

Factors to Consider

Per Royal Gold’s operational update for the fiscal second quarter, the company has sold 60,000 gold equivalent ounces (GEOs) consisting of around 47,000 gold ounces, 514,000 silver ounces and 2,000 tons of copper related to its streaming agreements.

Average realized prices of gold increased 22%, year on year, to $1,482 per ounce, while silver prices went up 20% to $17.38 per ounce. Gold prices increased during the October-December period, courtesy of the uncertainties related to the prolonged trade war, slowdown in manufacturing activity, concerns regarding global economic growth and the Fed’s rate cuts.

Royal Gold’s fiscal second-quarter revenues are likely to reflect impact of rising gold prices and higher units of gold sold. Also, in the fiscal first quarter, cost of sales was around $349 per GEO compared with the prior-quarter figure of $337 per GEO. This is anticipated to have bolstered the company’s margin in the quarter under review.

Earnings Whispers

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Royal Gold is +0.78%.

Zacks Rank: The company currently carries a Zacks Rank #1.

Price Performance


Royal Gold’s shares have gained 31.7% in the past year, compared with the industry’s growth of 40.8%.

Stocks That Warrant a Look

Here are a few Basic Materials stocks which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Bunge Limited (BG - Free Report) has an Earnings ESP of +18.18% and a Zacks Rank of 1, currently. You can see the complete list of today's Zacks #1 Rank stocks here.

Cleveland-Cliffs Inc. (CLF - Free Report) has a Zacks Rank #2 currently and an Earnings ESP of +6.25%.

AK Steel Holding Corporation , a Zacks Ranked #3 stock, has an Earnings ESP of 16.67%.

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