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What's in the Cards for Franco-Nevada's (FNV) Q1 Earnings?
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Franco-Nevada Corporation (FNV - Free Report) is slated to report first-quarter 2020 results on May 6, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for Franco-Nevada’s quarterly earnings is currently pegged at 55 cents, suggesting a 57% jump from the year-ago quarter. The Zacks Consensus Estimate for revenues is pinned at $234 million, indicating a year-over-year increase of 30%.
A Sneak Peek at Q4
In the last reported quarter, Franco-Nevada’s adjusted earnings per share of 59 cents beat the Zacks Consensus Estimate of 49 cents. The bottom line soared 146% from the year-ago quarter. Also, revenues of $258 million outpaced the Zacks Consensus Estimate of $234 million, surging 74.2% year on year.
Earnings Whispers
Our proven model predicts 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 chances of an earnings beat. 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 +1.53%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 56 cents and 55 cents, respectively.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Factors to Consider
Franco-Nevada is likely to have benefited from the Cobre Panama project during the March-end quarter. The project commenced commercial production in September 2019 — a month earlier than expected. The final mill (8th mill) came online in mid-December 2019, providing additional capacity on the third milling train. Thus, the project might have generated higher gold equivalent ounces (GEOs) in first-quarter 2020. However, recently, Cobre Panama’s operator, First Quantum, announced the temporary suspension of its operations on pandemic-related concerns.
Franco-Nevada’s revenues are particularly sensitive to changes in the prices of gold, silver, oil, natural gas, PGM and copper. Gold prices have been up 11.1%, so far this year, fueled by the slowdown in manufacturing activities, rate cuts, lower oil prices, geopolitical tensions and uncertainties regarding the coronavirus outbreak. The combination of lower mined-gold supply and higher demand, and geopolitical tensions are likely to have escalated prices. Hence, the impact of rising gold prices and the company’s continued focus on cost management are likely to have bolstered its margins in the quarter under review.
While gold has gained from its safe-haven demand, other commodities have been affected by the coronavirus pandemic. Weak silver, oil, natural gas and copper prices might have offset the company’s top-line growth in the January-March quarter. Moreover, Franco-Nevada’s revenues from energy assets are likely to reflect the unfavorable impact of lower oil prices in the period under review.
Price Performance
Franco-Nevada’s shares have appreciated 99% in the past year compared with the industry’s growth of 86.8%.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post earnings beats this quarter:
Wheaton Precious Metals Corp. (WPM - Free Report) has an Earnings ESP of +0.39% and carries a Zacks Rank #2, at present.
Domtar Corporation has an Earnings ESP of +39.8% and carries a Zacks Rank #3 currently.
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Image: Bigstock
What's in the Cards for Franco-Nevada's (FNV) Q1 Earnings?
Franco-Nevada Corporation (FNV - Free Report) is slated to report first-quarter 2020 results on May 6, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for Franco-Nevada’s quarterly earnings is currently pegged at 55 cents, suggesting a 57% jump from the year-ago quarter. The Zacks Consensus Estimate for revenues is pinned at $234 million, indicating a year-over-year increase of 30%.
A Sneak Peek at Q4
In the last reported quarter, Franco-Nevada’s adjusted earnings per share of 59 cents beat the Zacks Consensus Estimate of 49 cents. The bottom line soared 146% from the year-ago quarter. Also, revenues of $258 million outpaced the Zacks Consensus Estimate of $234 million, surging 74.2% year on year.
Earnings Whispers
Our proven model predicts 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 chances of an earnings beat. 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 +1.53%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 56 cents and 55 cents, respectively.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Factors to Consider
Franco-Nevada is likely to have benefited from the Cobre Panama project during the March-end quarter. The project commenced commercial production in September 2019 — a month earlier than expected. The final mill (8th mill) came online in mid-December 2019, providing additional capacity on the third milling train. Thus, the project might have generated higher gold equivalent ounces (GEOs) in first-quarter 2020. However, recently, Cobre Panama’s operator, First Quantum, announced the temporary suspension of its operations on pandemic-related concerns.
Franco-Nevada’s revenues are particularly sensitive to changes in the prices of gold, silver, oil, natural gas, PGM and copper. Gold prices have been up 11.1%, so far this year, fueled by the slowdown in manufacturing activities, rate cuts, lower oil prices, geopolitical tensions and uncertainties regarding the coronavirus outbreak. The combination of lower mined-gold supply and higher demand, and geopolitical tensions are likely to have escalated prices. Hence, the impact of rising gold prices and the company’s continued focus on cost management are likely to have bolstered its margins in the quarter under review.
While gold has gained from its safe-haven demand, other commodities have been affected by the coronavirus pandemic. Weak silver, oil, natural gas and copper prices might have offset the company’s top-line growth in the January-March quarter. Moreover, Franco-Nevada’s revenues from energy assets are likely to reflect the unfavorable impact of lower oil prices in the period under review.
Price Performance
Franco-Nevada’s shares have appreciated 99% in the past year compared with the industry’s growth of 86.8%.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post earnings beats this quarter:
The Scotts Miracle-Gro Company (SMG - Free Report) has an Earnings ESP of +1.49% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wheaton Precious Metals Corp. (WPM - Free Report) has an Earnings ESP of +0.39% and carries a Zacks Rank #2, at present.
Domtar Corporation has an Earnings ESP of +39.8% and carries a Zacks Rank #3 currently.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>