Royal Gold Inc. Earnings: Double-Digit Revenue Growth Continues

Royal Gold Inc. (NASDAQ:RGLD) reported higher profit for the second 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: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Royal Gold Earnings Cheat Sheet for the Second Quarter

Results: Net income for the gold company rose to $23.4 million (42 cents per share) vs. $18.3 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter.

Revenue: Rose 22.2% to $68.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Royal Gold Inc. fell short of the mean analyst estimate of 48 cents per share. It fell short of the average revenue estimate of $73.3 million.

Quoting Management: Tony Jensen, President and CEO, commented, “We are pleased to have recorded another solid quarter of financial results. This marks the third consecutive quarter of record revenue and net income for Royal Gold as our growth profile continues to deliver financial results. We also had a very productive quarter furthering our growth projects within the portfolio with the acquisition of an additional interest at the Mt. Milligan project and completing a transaction on the Tulsequah Chief project, both located in British Columbia. In total, we have committed $330 million for these transactions, subject to certain conditions. To fuel this growth and position the Company for the future, we conducted an equity offering in mid-January which raised approximately $268.4 million.”

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 46.2%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 62.1% from the year earlier quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 42 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 57 cents per share, down from 66 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.12 a share to $2.02 over the last ninety days.

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

Don’t Miss These Additional Hot Earnings Stories:

Chipotle Mexican Grill Inc. Earnings: Double-Digit Growth Again

Las Vegas Sands Corp. Earnings: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

Green Mountain Coffee Roasters Inc. Earnings: Beats Analysts’ Estimates

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com