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Royal Gold (RGLD) Q2 Earnings & Sales Miss Estimates, Down Y/Y

·3-min read

Royal Gold, Inc. RGLD reported adjusted earnings per share (EPS) of 81 cents in second-quarter 2022, missing the Zacks Consensus Estimate of 91 cents. The bottom line declined 22% year over year.

Including one-time items, the company reported EPS of $1.08 compared with the prior-year quarter’s $1.24.

The company generated revenues of $146 million, down 13% year over year. The top line also missed the Zacks Consensus Estimate of $160 million. The downside resulted primarily from lower gold sales at Andacollo and Pueblo Viejo and lower gold production at Cortez and Peñasquito. However, these factors were partly offset by new revenue from the NX Gold and Khoemacau streams.

Stream revenues were $105 million and royalty revenues were $42 million during the June-end quarter. Both stream and royalty revenues declined 8% and 22% year over year, respectively.

The company’s cost of sales came in at $24 million in the second quarter compared with the prior-year quarter’s $25 million.

General and administrative expenses amounted to $9 million, up 29% year over year. The adjusted EBITDA was $114 million in the reported quarter, down 16% year over year. The adjusted EBITDA margin came in at 78.2% compared with the prior-year quarter’s 80.4%.

Royal Gold, Inc. Price, Consensus and EPS Surprise

 

Royal Gold, Inc. Price, Consensus and EPS Surprise
Royal Gold, Inc. Price, Consensus and EPS Surprise

Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote

 

Financial Position

Net cash from operating activities was $120 million in the second quarter compared with the prior-year quarter’s $121 million. Royal Gold ended the quarter with cash and cash equivalents of around $281 million compared with $144 million at the end of 2021.

Price Performance

In the past year, shares of Royal Gold have declined 11.5% compared with the industry’s loss of 15.2%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Royal Gold currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks worth considering in the basic materials space include Cabot Corporation CBT, Ashland Global Holdings Inc. ASH and Albemarle Corporation ALB.

Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.

Ashland, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 50.9% for fiscal 2022. The Zacks Consensus Estimate for ASH’s fiscal 2022 earnings has been revised 10.5% upward in the past 60 days.

ASH’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. It has a trailing four-quarter earnings surprise of roughly 1.82%, on average. ASH shares are up around 20.9% in a year.

Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 7.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 18% in a year. The company has a Zacks Rank #2.


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