Yahoo Finance Why Is Royal Gold (RGLD) Up 4.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Royal Gold (RGLD). Shares have added about 4.4% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Royal Gold Earnings Miss Estimates in Q1, Dip Y/Y
Royal Gold reported adjusted earnings per share (EPS) of 91 cents in first-quarter 2024, missing the Zacks Consensus Estimate of 95 cents. The bottom line declined 5% year over year.
Including one-time items, the company reported EPS of 72 cents compared with the prior-year quarter’s 97 cents.
The company generated revenues of $149 million, reflecting year-over-year dip 12.6%. The downside was driven by lower gold production at the Cortez Legacy Zone, lower gold and copper sales at Mount Milligan and lower gold and silver sales at Pueblo Viejo. These were negated by increased average gold and silver prices and higher year-over-year gold sales from Wassa and Xavantina.
Stream revenues were $103 million and royalty revenues were $46 million in the March-end quarter. On a year-over-year basis, stream revenues fell 10.9%, whereas royalty revenues decreased 16.2%.
The company’s cost of sales came in at $22 million in the first quarter compared with the prior-year quarter’s $25 million.
General and administrative expenses amounted to $11 million, up 3.6% year over year. The adjusted EBITDA was $117 million in the reported quarter, down 13.2% year over year. The adjusted EBITDA margin came in at 79%, flat year-over-year.
Financial Position
Net cash from operating activities was $138 million in the first quarter compared with the prior-year quarter’s $109 million. Royal Gold ended the quarter with cash and cash equivalents of around $138 million compared with $127 million at the end of Mar 31, 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted 11.77% due to these changes.
VGM Scores
At this time, Royal Gold has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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 belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Barrick Gold (GOLD), has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Barrick Gold reported revenues of $2.75 billion in the last reported quarter, representing a year-over-year change of +3.9%. EPS of $0.19 for the same period compares with $0.14 a year ago.
For the current quarter, Barrick Gold is expected to post earnings of $0.27 per share, indicating a change of +42.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +6% over the last 30 days.
Barrick Gold has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Royal Gold, Inc. (RGLD) : Free Stock Analysis Report
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