Royal Gold First Quarter Earnings Sneak Peek

Royal Gold, Inc. (NASDAQ:RGLD) will unveil its latest earnings on Thursday, November 1, 2012. Royal Gold, together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties.

Royal Gold, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 41 cents per share, a decline of 2.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 46 cents during the last month. Analysts are projecting profit to rise by 20.2% versus last year to $1.96.

Past Earnings Performance: The company showed net income of 34 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

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Stock Price Performance: Between September 28, 2012 and October 26, 2012, the stock price dropped $14.98 (-15%), from $99.83 to $84.85. The stock price saw one of its best stretches over the last year between August 14, 2012 and August 24, 2012, when shares rose for nine straight days, increasing 12.3% (+$9.29) over that span. It saw one of its worst periods between February 1, 2012 and February 9, 2012 when shares fell for seven straight days, dropping 9.1% (-$7.06) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 29.27 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 5.1% to $20.6 million (35 cents a share) from $21.7 million (39 cents a share) the year earlier, missing analyst expectations. Revenue rose 1.4% to $60.1 million from $59.3 million.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 90.1% in the first quarter of the last fiscal year, 27.8% in the second quarter of the last fiscal year and 32.9% in the third quarter of the last fiscal year before declining in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 42.2% in the first quarter of the last fiscal year, 22.2% in the second quarter of the last fiscal year and 25.4% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: There are mostly holds on the stock with five of five analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts predict a rise of 0.2% in revenue from the year-earlier quarter to $64.6 million.

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

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