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What's in the Offing for Franco-Nevada's (FNV) Q4 Earnings?

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Franco-Nevada Corporation (FNV - Free Report) is slated to report fourth-quarter 2019 results on Mar 9, after the closing bell.

Q4 Estimates

The Zacks Consensus Estimate for Franco-Nevada’s quarterly earnings is currently pegged at 49 cents, suggesting 104% growth from the year-ago quarter. The Zacks Consensus Estimate for revenues is pinned at $234 million, depicting a year-over-year increase of 58%.

A Sneak Peek at Q3

In the last reported quarter, Franco-Nevada’s adjusted earnings per share of 54 cents beat the Zacks Consensus Estimate of 45 cents. The top line marked an improvement of 86% from the year-ago quarter. Also, revenues of $235.7 million outpaced the Zacks Consensus Estimate of $216 million and improved 38% year on year.

The company has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 11.75%.

Factors to Consider

Franco-Nevada is likely to have benefited from the Cobre Panama project during the December-end quarter. The project commenced commercial production in September 2019 — a month earlier than expected. Hence, higher gold equivalent ounces (GEOs) from the project are expected to have bolstered the company’s performance in the quarter under review.

The company is also focused on generating higher revenues from its energy assets, driven by the Marcellus royalty acquisition and stellar performance of energy assets.

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. Impact of rising gold prices and higher units of gold sold are likely to get reflected in Franco-Nevada’s quarterly results. Higher sales and lower costs are likely to have bolstered the to-be-reported quarter’s performance.

Franco-Nevada Corporation Price and EPS Surprise

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Franco-Nevada this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

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 Franco-Nevada is -2.72%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 48 cents and 49 cents, respectively.

Zacks Rank: The company currently carries a Zacks Rank of 2.

Price Performance

Franco-Nevada’s shares have gained 53% in the past year compared with the industry’s growth of 40.5%.

Stocks That Warrant a Look

Here are a few 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:

ProPetro Holding Corp. (PUMP - Free Report) , a Zacks Ranked #1 stock, has an Earnings ESP of 140.8%.You can see the complete list of today's Zacks #1 Rank stocks here.

Silver Wheaton Corp (WPM - Free Report) has an Earnings ESP of +1.24% and carries a Zacks Rank of 2, currently.

Abercrombie & Fitch Co. (ANF - Free Report) currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.12%.

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