Published on 8 May 2024 on Zacks via Yahoo Finance
Franco-Nevada (FNV) Earnings Beat Estimates in Q1, Shares Gain
Franco-Nevada Corporation’s FNV shares have improved around 3% since it reported first-quarter 2024 earnings on May 1. This uptick was driven by the company's outstanding margin performance, supported by rising gold prices, despite experiencing year-over-year declines in revenues and earnings.Adjusted earnings of 76 cents per share beat the Zacks Consensus Estimate of 68 cents. The 4% year-over-year decline in its bottom line was mainly attributed to lower Gold Equivalent Ounces (GEOs) sold in the quarter. Notably, FNV’s adjusted net income margin came in at 56.9% in the first quarter of 2024, indicating a year-over-year expansion of 180 basis points.
The company generated revenues of $257 million in the reported quarter, down 7.1% year over year. Increased gold prices were offset by fewer GEOs sold in the quarter. In the March-end quarter, 78.7% of revenues were sourced from Precious Metal assets (62.7% gold, 9.7% silver and 3.1% platinum group metals).FNV sold 93,018 GEOs from Precious Metal assets in the reported quarter, down 16% from the prior-year quarter. The downside was due to lower deliveries from Cobre Panama (as the mine remains in preservation and safe management) and Antamina, partially offset by higher contributions from Antapaccay, Guadalupe-Palmarejo and Subika.In the reported quarter, the adjusted EBITDA was down 5.8% year over year to $216 million. Adjusted EBITDA margin was 84.2% in the quarter, indicating an expansion from 83% in the first quarter of 2023.
Franco-Nevada Corporation Price, Consensus and EPS Surprise