Royal Gold Earnings Cheat Sheet: Revenues Glitter 58% Higher

Royal Gold, Inc. (NASDAQ:RGLD) reported its results for the third quarter. Royal Gold Inc, together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties. The Company owns royalty interests that are currently in development stage.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

Royal Gold Earnings Cheat Sheet for the Third Quarter

Results: Swung to a profit of $19.6 million (35 cents/diluted share) in the quarter. The gold company had a net loss of $5.8 million or a loss of 13 cents per share in the year earlier quarter.

Revenue: Rose 58.5% to $55.5 million YoY.

Actual vs. Wall St. Expectations: RGLD fell short of mean estimate of 39 cents/share. Estimates ranged from 38 cents per share to 41 cents per share.

Quoting Management: Tony Jensen, President and CEO, commented, “We are starting to see the revenue potential from three of our cornerstone royalties as Andacollo and Peñasquito continued to ramp up capacity and Voisey’s Bay regained production following its labor settlement. In addition, two of our development properties, Holt and Wolverine, moved into production increasing our producing portfolio to 35 revenue-generating properties. In the coming quarters, we expect further production gains at Peñasquito, Holt and Wolverine as they work towards full design capacity, as well as the commencement of production from Canadian Malartic scheduled for later this month.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 69.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 82.6% from the year earlier quarter.

Competitors to Watch: Royal Gold, Inc. (RGL), Newmont Mining Corporation (NYSE:NEM), Alto Group Holdings Inc. (ALTO), U.S. Gold Corporation (NYSE:UXG), Allied Nevada Gold Corp. (AMEX:ANV), Barrick Gold Corp. (NYSE:ABX), Coeur d’Alene Mines Corp. (NYSE:CDE), Rio Tinto plc (NYSE:RIO), Vista Gold Corp. (AMEX:VGZ), SPDR Gold Trust (NYSE:GLD), SPDR Silver Trust (NYSE:SLV) and Paramount Gold and Silver Corp. (AMEX:PZG)

Stock Performance: Shares of RGLD are trading at $57.39 as of May 5, 2011 at 11:04 AM ET, down 2% from the previous closing price of $58.59.


Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

More from The Cheat Sheet