Royal Gold Earnings: Here’s Why Investors are Excited Now

Royal Gold, Inc. (NASDAQ:RGLD) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.35%.

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Royal Gold, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.91% to $0.37 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 6.4% to $74.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Royal Gold, Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company missed the mean analyst estimate of $0.4. It missed the average revenue estimate of $75.45 million.

Quoting Management: Tony Jensen, President and CEO, commented, “Achieving another quarter of strong royalty revenue despite lower year-over-year average gold prices, highlights the strength of our royalty portfolio. We expect to add Mt. Milligan to our producing portfolio of assets in the near future as production is scheduled to commence in the third calendar quarter of this year. In addition, our strong financial position allows us to seek new business opportunities as we look to expand our high quality portfolio.”

Key Stats (on next page)…

Revenue decreased 7.22% from $79.87 million in the previous quarter. EPS decreased 11.9% from $0.42 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.42. For the current year, the average estimate has moved down from a profit of $1.77 to a profit of $1.62 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)