Royal Gold Earnings: Revenue and Net Income Grow

Royal Gold Inc. (NASDAQ:RGLD) reported higher profit for the first quarter as revenue showed growth. Royal Gold, together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties.

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Royal Gold Inc. Earnings Cheat Sheet

Results: Net income for Royal Gold Inc. rose to $24.8 million (41 cents per share) vs. $22.5 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 10.1% from the year-earlier quarter.

Revenue: Rose 20.8% to $77.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Royal Gold Inc. fell in line with the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $69.4 million.

Quoting Management: Tony Jensen, President and CEO, commented, “Our assets continue to deliver strong financial results and it is particularly gratifying to see several properties have success in ramping up production towards design capacities. We anticipate further incremental production increases from Andacollo, Peasquito, and Canadian Malartic in the coming quarters. This is also an important time for Royal Gold to have sufficient resources to respond to new business opportunities. Our offering in October, coupled with cash on hand and our undrawn credit facility, puts us in a strong position, with over $1.0 billion of liquidity to further expand our portfolio.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 1.4% to $60.1 million in the fourth quarter of the last fiscal year. The figure rose 25.4% in the third quarter of the last fiscal year from the year earlier and climbed 22.2% in the second quarter of the last fiscal year from the year-ago quarter.

After missing the mark in the previous two quarters, the company met analyst estimates. In the fourth quarter of the last fiscal year, it fell short by 9 cents, and in the third quarter of the last fiscal year, it was under-estimate by 5 cents.

Net income has increased 31.2% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 90.1% from the year-earlier quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the second quarter has gone up from 54 cents per share to 56 cents. At $1.96 per share, the average estimate for the fiscal year has fallen from $2.06 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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