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Why Is Franco-Nevada (FNV) Up 3.8% Since Last Earnings Report?

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A month has gone by since the last earnings report for Franco-Nevada (FNV - Free Report) . Shares have added about 3.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Franco-Nevada due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Franco-Nevada Q2 Earnings Miss, Revenues Decline Y/Y

Franco-Nevada reported adjusted earnings of 75 cents per share in second-quarter 2024, missing the Zacks Consensus Estimate of 78 cents. The bottom line decreased 21% year over year.

The company generated revenues of $260 million in the reported quarter, down 21.2% year over year. The downside was driven by lower contributions from Antapaccay, Candelaria and Energy assets, partially offset by record gold prices. In the June-end quarter, 74.2% of revenues were sourced from Precious Metal assets (60.3% gold, 10.8% silver and 3.1% platinum group metals).

The company sold 82,350 Gold Equivalent Ounces (GEOs) from precious metal assets in the reported quarter, down from the prior-year quarter’s 132,033 GEOs.

In the reported quarter, adjusted EBITDA was down 19.5% year over year to $222 million. The adjusted EBITDA margin was 85.3% in the quarter under review compared with the prior-year quarter’s 83.5%.

Financial Position

The company had $1.44 billion cash in hand at the end of the second quarter of 2024, up from $1.42 billion as of the end of 2023. It recorded an operating cash flow of $373 million in the first half of 2024, down from $472 million in the prior-year period.

Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay out dividends. FNV now has an available capital of $2.4 billion.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, Franco-Nevada has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Franco-Nevada has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Franco-Nevada belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Agnico Eagle Mines (AEM - Free Report) , has gained 1.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

Agnico reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +20.9%. EPS of $1.07 for the same period compares with $0.65 a year ago.

Agnico is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of +104.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.5%.

Agnico has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.


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