Sprott (NYSE:SII) Issues Earnings Results, Misses Expectations By $0.17 EPS

Sprott (NYSE:SII) released its quarterly earnings results on Wednesday. The company reported $0.86 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.17), Zacks reports. The company had revenue of $66.88 million during the quarter, compared to the consensus estimate of $72.67 million. Sprott had a net margin of 27.87% and a return on equity of 30.07%.

Here are the key takeaways from Sprott’s conference call:

• Profitability rose sharply: Third-quarter adjusted EBITDA increased 44% year over year to $46 million, while net income rose 67% to $22 million. Average AUM was up 39% year over year to $58.8 billion.
• Flows remained uneven: AUM ended the quarter at $57.3 billion, up 3% from June but down 4% year over year, with $200 million in net redemptions, primarily from physical trusts. The Physical Silver Trust saw $421 million in outflows, partly attributed by management to silver-market weakness and India’s import restrictions.
• Critical materials strategies attracted investors: The company reported about $200 million in net sales for these strategies, while investors added to uranium and rare-earth products. Management highlighted long-term supply constraints and said its uranium assets under management have grown to more than $10 billion.
• Shareholder returns and financial flexibility strengthened: The board raised the regular quarterly dividend by 25%, its third consecutive year of double-digit growth. Sprott ended September with more than $200 million in cash, no debt, and year-to-date share repurchases approaching 1% of shares outstanding.
• Management expects volatile markets but remains constructive on metals: Executives attributed precious-metals pressure to liquidity and interest-rate-related selling, while arguing that fiscal and geopolitical risks support the longer-term outlook. They cautioned that commodity prices and investor participation are difficult to predict.

Sprott Price Performance

NYSE:SII traded up $0.77 during mid-day trading on Friday, hitting $113.07. 76,971 shares of the company’s stock were exchanged, compared to its average volume of 196,768. Sprott has a one year low of $80.53 and a one year high of $169.63. The business has a fifty day moving average price of $118.60 and a 200 day moving average price of $126.50. The company has a market cap of $2.91 billion, a PE ratio of 25.52 and a beta of 0.96.

Sprott Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 16th will be given a dividend of $0.50 per share. This is an increase from Sprott’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Monday, November 16th. This represents a $2.00 dividend on an annualized basis and a yield of 1.8%. Sprott’s dividend payout ratio is 39.22%.

Analyst Ratings Changes

SII has been the subject of several research reports. Wall Street Zen lowered shares of Sprott from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. TD Securities reaffirmed a “hold” rating on shares of Sprott in a research note on Thursday, August 6th. Finally, Weiss Ratings upgraded shares of Sprott from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $230.00.

About Sprott

Sprott Inc is an alternative asset manager focused on precious metals and other real assets. The company provides investment solutions designed to give investors exposure to gold, silver, uranium, energy transition materials, and natural resources.

Its offerings include exchange-traded funds, closed-end funds, physical bullion trusts, managed accounts, and private-market strategies. Sprott’s products may invest directly in physical commodities, resource companies, or assets connected to the natural resources and real asset sectors.

Founded in 1981, Sprott serves institutional and individual investors across North America and international markets.