Franco-Nevada Corporation
’s
FNV
shares have declined around 10% since the company reported first-quarter 2022 earnings on May 4. The company reported adjusted earnings of 93 cents per share in the quarter, missing the Zacks Consensus Estimate of 95 cents per share. The bottom line increased 11% year over year.
The company generated revenues of $339 million in the reported quarter, up 10% year over year. The upside was driven by higher realized oil and gas prices from its Energy assets and revenues from the recently-acquired
Vale S.A.
VALE
Royalty. The top line surpassed the Zacks Consensus Estimate of $333 million. During the March-end quarter, 71.7% of revenues were sourced from Precious Metal assets (55.4% gold, 12.1% silver and 4.2% platinum group metals).
Last April, Franco-Nevada acquired Vale Royalty’s interest. The buyout contributed to the company’s Diversified assets revenues in the first quarter.
The company sold 128,627 Gold Equivalent Ounces (GEOs) from precious metal assets in the reported quarter, down from the prior-year quarter’s 145,969 GEOs. Higher contributions from Guadalupe-Palmarejo and Candelaria were offset by lower deliveries from the Hemlo, Antapaccay and Antamina mines.
During the reported quarter, adjusted EBITDA rose 9% year over year to $287 million.
FrancoNevada Corporation Price, Consensus and EPS Surprise
FrancoNevada Corporation price-consensus-eps-surprise-chart
|
FrancoNevada Corporation Quote
Financial Position
The company had $723 million cash in hand at the end of the first quarter of 2022, up from $539 million reported as of the end of 2021. It recorded an operating cash flow of $231 million in the first quarter of 2022, up from $224 million in the prior-year quarter.
Franco-Nevada is debt-free and uses its free cash flow to expand the portfolio and pay out dividends. FNV now has available capital of $1.7 billion.
Franco-Nevada is on track to meet the current year’s total GEOs guidance between 680,000 and 740,000.
Price Performance
Franco-Nevada’s shares have lost 4.6% in the past year compared with the
industry
’s decline of 9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Franco-Nevada currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space include
Steel Dynamics, Inc.
STLD
and
Commercial Metals Company
CMC
.
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 32.5% upward in the past 60 days. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has gained around 25% in the past year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same in one. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 21% in a year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
