Royal Gold Second Quarter Earnings Sneak Peek

Royal Gold, Inc. (NASDAQ:RGLD) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. 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 net income of 43 cents per share, a rise of 2.4% 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 56 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 49 cents during the last month. Analysts are projecting profit to rise by 18.4% versus last year to $1.93.

Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting profit of 41 cents per share in the first quarter to fall in line with expectations, the company beat estimates by 9 cents in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: On average, analysts predict $80.2 million in revenue this quarter, a rise of 16.5% from the year-ago quarter. Analysts are forecasting total revenue of $323.1 million for the year, a rise of 22.8% from last year’s revenue of $263.1 million.

Here’s how Royal Gold traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

rgld

A Look Back: In the first quarter, profit rose 10.1% to $24.8 million (41 cents a share) from $22.5 million (40 cents a share) the year earlier, meeting analyst expectations. Revenue rose 20.8% to $77.9 million from $64.5 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 19.24 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. The company regressed in this liquidity measure from 29.27 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 27.1% to $19.3 million while assets decreased 16.5% to $371.8 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 22.2% in the second quarter of the last fiscal year, 25.4% in the third quarter of the last fiscal year and 1.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

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

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