Royal Gold Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Revenue Growth

Royal Gold, Inc. (NASDAQ:RGLD) reported higher profit for the fourth quarter as revenue showed growth. 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.

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Royal Gold Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the gold company rose to $21.7 million (39 cents per share) vs. $10.5 million (23 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 45.8% to $59.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RGLD fell short of the mean analyst estimate of 40 cents per share. Analysts were expecting revenue of $59.4 million.

Quoting Management: Tony Jensen, President and CEO, commented, “Fiscal 2011 was an outstanding year for Royal Gold as we marked our tenth straight year of revenue and free cash flow growth. Our cornerstone properties provided substantial revenue as the Penasquito and Andacollo properties reached commercial production and the Voisey’s Bay labor dispute was resolved. We completed three significant transactions during the fiscal year. The first two consisted of increasing our royalty interest on the Pascua-Lama project, and acquiring a gold stream from the Mt. Milligan project. We expect that both of these additions will have a significant impact on our long-term revenue profile. The third transaction consisted of acquiring an option on the KSM project, which, if exercised, would add an additional long-life royalty to our portfolio. Also, during the second half of the year, we saw initial contributions from the Canadian Malartic, Holt and Wolverine mines, positioning us well for both near and long-term revenue growth.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 64.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 82.6% from the year earlier quarter.

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 4 cents with net income of 35 cents versus a mean estimate of net income of 39 cents per share.

Competitors to Watch: Newmont Mining Corporation (NYSE:NEM), 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), and Paramount Gold and Silver Corp. (AMEX:PZG).

Is Gold the Safe Haven? For more analysis on our support levels and ranges for gold and silverconsider a free 14-day trial to our acclaimed Gold & Silver Investment Newsletter.

(Source: Xignite Financials)

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