Royal Gold Inc. Second Quarter Earnings Sneak Peek

Royal Gold, Inc. (NASDAQ:RGLD) will unveil its latest earnings on Thursday, February 2, 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 estimate of analysts is for profit of 48 cents per share, a rise of 45.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 61 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 50 cents during the last month. For the year, analysts are projecting net income of $2.02 per share, a rise of 56.6% from last year.

Past Earnings Performance: Last quarter, the company showed profit of 42 cents per share in the first quarter to fall in line with expectations, the company beat estimates by one cent in the fourth quarter of the last fiscal year. This comes after the company failed to meet analysts’ expectations in the previous two.

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Wall St. Revenue Expectations: On average, analysts predict $73.3 million in revenue this quarter, a rise of 30.2% from the year ago quarter. Analysts are forecasting total revenue of $287.2 million for the year, a rise of 32.7% from last year’s revenue of $216.5 million.

Analyst Ratings: Analysts seem relatively indifferent about Royal Gold with four of five analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, profit rose 90.1% to $22.5 million (40 cents a share) from $11.8 million (21 cents a share) the year earlier, meeting analyst expectations. Revenue rose 42.2% to $64.5 million from $45.3 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 52.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 62.1% from the year earlier quarter.

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).

Stock Price Performance: During December 28, 2011 to January 27, 2012, the stock price had risen $9.57 (14.5%) from $65.85 to $75.42. The stock price saw one of its best stretches over the last year between October 19, 2011 and October 28, 2011 when shares rose for eight-straight days, rising 15% (+$9.44) over that span. It saw one of its worst periods between September 20, 2011 and October 4, 2011 when shares fell for 11-straight days, falling 25.1% (-$20.44) over that span.

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

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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