What's In The Offing For Franco-Nevada's (FNV) Q4 Earnings?
Zacks Investment Research | Mar 17, 2019 11:15PM ET
Franco-Nevada Corporation (TO:FNV) is set to release fourth-quarter 2018 results after the closing bell on Mar 19.
In the last reported quarter, the company delivered net earnings of $54.6 million or 29 cents per share compared to $55.3 million or 30 cents in the prior-year quarter. However, earnings outpaced the Zacks Consensus Estimate of 26 cents.
The company’s revenues came in at $171 million in the third quarter, down 0.5% year over year. The figure beat the Zacks Consensus Estimate of $164 million.
Franco-Nevada surpassed the Zacks Consensus Estimate in two of the trailing four quarters, average positive surprise being 5.50%.
Can the company surprise investors again or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
Factors at Play
Performance of the company's Oil & Gas assets remained robust in the first three quarters of 2018, with revenues doubling to $68 million from $33 million in the prior-year period. This can be attributed to the stronger oil prices and increased production from the newly-added U.S. assets. Drill activity is higher and drilling productivity has been better than expected. This will likely aid results in the to-be-reported quarter as well. Franco-Nevada, thus, anticipates revenues between $85 million and $88 million from its Oil & Gas assets for 2018, up from the previous guidance of $75-$85 million.
However, Franco-Nevada’s GEO production will be affected in the Oct-Dec quarter due to the processing of lower-grade materials at its Candelaria mine. The company, thus, expects to achieve gold production for 2018 within its previously-provided guided range, with GEOs expected to total between 445,000 and 450,000.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $162 million, depicting a year-over-year decline of 3%. Also, the Zacks Consensus Estimate for earnings at 26 cents per share reflects a year-over-year drop of 7%.
Franco-Nevada Corporation Price and EPS Surprise
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