Royal Gold Inc. Earnings: Fifth Consecutive Quarter of Double-Digit Revenue Growth

Royal Gold Inc. (NASDAQ:RGLD) reported higher profit for the third 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for Royal Gold Inc. rose to $26 million (44 cents per share) vs. $19.6 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 32.9% from the year-earlier quarter.

Revenue: Rose 25.3% to $69.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Royal Gold Inc. fell short of the mean analyst estimate of 49 cents per share. Analysts were expecting revenue of $69.4 million.

Quoting Management: Tony Jensen, President and CEO, commented, “These financial results mark the fourth consecutive quarter for record royalty revenue and Adjusted EBITDA, and the eighth consecutive quarter for record net income. These results have been achieved by new and increasing production within our portfolio of 38 producing assets and by strong precious metal prices. We expect continued production increases at several of our producing assets this calendar year, including Andacollo and Peasquito. In addition, construction at our two key growth properties, Pascua-Lama and Mt. Milligan, remains on schedule and will enhance our long-term revenue profile.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 38.8%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 58.5% from the year earlier quarter.

The company has fallen short of estimates for two consecutive quarters. In the second quarter, it missed expectations by 6 cents with net income of 42 cents versus a mean estimate of net income of 48 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 59 cents a share to 52 cents over the last sixty days. For the fiscal year, the average estimate has moved down from $2.02 a share to $1.81 over the last ninety days.

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

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