Franco-Nevada (NYSE:FNV) Posts Quarterly Earnings Results

Franco-Nevada (NYSE:FNV) (TSE:FNV) posted its quarterly earnings results on Tuesday. The basic materials company reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.18, Briefing.com reports. The business had revenue of $597.30 million for the quarter, compared to the consensus estimate of $542.02 million. Franco-Nevada had a return on equity of 13.94% and a net margin of 59.48%.The business’s revenue was up 86.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.95 EPS.

Franco-Nevada Stock Performance

FNV stock opened at $262.40 on Wednesday. Franco-Nevada has a one year low of $140.03 and a one year high of $285.67. The firm has a market cap of $50.59 billion, a price-to-earnings ratio of 55.01, a PEG ratio of 3.50 and a beta of 0.45. The firm has a 50-day simple moving average of $247.60 and a two-hundred day simple moving average of $218.19.

Franco-Nevada Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, March 12th. This is a positive change from Franco-Nevada’s previous quarterly dividend of $0.38. This represents a $1.76 annualized dividend and a dividend yield of 0.7%. Franco-Nevada’s payout ratio is currently 31.87%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Clark Capital Management Group Inc. lifted its position in Franco-Nevada by 1.0% during the fourth quarter. Clark Capital Management Group Inc. now owns 5,054 shares of the basic materials company’s stock valued at $1,048,000 after acquiring an additional 50 shares during the last quarter. Guardian Partners Inc. grew its holdings in Franco-Nevada by 3.2% in the fourth quarter. Guardian Partners Inc. now owns 1,692 shares of the basic materials company’s stock worth $351,000 after purchasing an additional 52 shares during the last quarter. Private Advisor Group LLC increased its position in shares of Franco-Nevada by 0.3% during the fourth quarter. Private Advisor Group LLC now owns 22,824 shares of the basic materials company’s stock worth $4,731,000 after purchasing an additional 60 shares in the last quarter. Smartleaf Asset Management LLC increased its position in shares of Franco-Nevada by 26.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 316 shares of the basic materials company’s stock worth $66,000 after purchasing an additional 66 shares in the last quarter. Finally, Brown Brothers Harriman & Co. lifted its holdings in shares of Franco-Nevada by 10.7% during the 4th quarter. Brown Brothers Harriman & Co. now owns 971 shares of the basic materials company’s stock valued at $201,000 after purchasing an additional 94 shares during the last quarter. Institutional investors own 77.06% of the company’s stock.

Analyst Ratings Changes

FNV has been the subject of a number of research reports. Zacks Research raised shares of Franco-Nevada from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 27th. UBS Group reissued a “buy” rating and set a $310.00 target price on shares of Franco-Nevada in a research report on Friday, January 30th. Canaccord Genuity Group cut shares of Franco-Nevada from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 23rd. Weiss Ratings downgraded shares of Franco-Nevada from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday. Finally, Royal Bank Of Canada raised shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating and lifted their price objective for the company from $225.00 to $250.00 in a report on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $254.38.

About Franco-Nevada

Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.

The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.