Franco-Nevada Corporation (FNV – Free Report) reported adjusted earnings of $1.02 per share in second-quarter 2022, beating the Zacks Consensus Estimate of 96 cents per share. The bottom line increased 7% year over year.
The company generated record revenues of $352 million in the reported quarter, up 1.5% year over year. The upside was driven by higher realized oil and gas prices from its Energy assets. The top line surpassed the Zacks Consensus Estimate of $330 million. During the June-end quarter, 69.2% of revenues were sourced from Precious Metal assets (54.1% gold, 10.2% silver and 4.9% platinum group metals).
The company sold 131,574 Gold Equivalent Ounces (GEOs) from precious metal assets in the reported quarter, down from the prior-year quarter’s 145,9637 GEOs. Higher contributions from Hemlo, Gold Quarry and Subika (Ahafo) were more than offset by lower deliveries from Antamina, Guadalupe, Goldstrike and Stillwater.
During the reported quarter, adjusted EBITDA was up 4% year over year to $301 million.
The company had $911 million cash in hand at the end of the second quarter of 2022, up from $539 million reported as of the end of 2021. It recorded an operating cash flow of $488 million in the first half of 2022, up from $469 million in the prior-year period.
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 $1.9 billion.
Franco-Nevada’s shares have lost 13.8% in the past year compared with the industry’s fall of 9.8%.
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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 Cabot Corporation (CBT – Free Report) , Ashland Global Holdings Inc. (ASH – Free Report) and Albemarle Corporation (ALB – Free Report) .
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, 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.