Royal Gold, Inc. Earnings Cheat Sheet: Revenue Grows Again by Double-Digits

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.

Investing Insights: Gold and Silver Jump After Bernanke and Einhorn Speak>>

Royal Gold Earnings Cheat Sheet for the First Quarter

Results: Net income for Royal Gold, Inc. rose to $17.2 million (40 cents per share) vs. $11.8 million (21 cents per share) in the same quarter a year earlier. This marks a rise of 45.3% from the year earlier quarter.

Revenue: Rose 42.2% to $64.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RGLD reported adjusted net income of 43 cents per share. By that measure, the company beat the mean estimate of 42 cents per share. It beat the average revenue estimate of $62.1 million.

Quoting Management: Tony Jensen, President and CEO, commented, “Our record financial results are now reflecting the many investments we have made over the past several years, as well as strong metals prices. We anticipate further production increases over the next few quarters from Andacollo, Penasquito, Holt, Las Cruces and Canadian Malartic as they all work to achieve full design capacity. And, construction at two key development properties, Pascua-Lama and Mt. Milligan, remains on schedule. We expect these properties to play a significant role in driving future 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 56.4%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 73.6% from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the fourth quarter of the last fiscal year, it missed the mark by one cent, and in the third quarter of the last fiscal year, it fell short by 4 cents.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 61 cents per share from 45 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.76 per to share to $2.12.

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).

Investing Insights: Gold and Silver Jump After Bernanke and Einhorn Speak>>

(Source: Xignite Financials)