Franco-Nevada (NYSE:FNV) Issues Earnings Results, Misses Expectations By $0.14 EPS

Franco-Nevada (NYSE:FNV) (TSE:FNV) issued its earnings results on Tuesday. The basic materials company reported $1.81 EPS for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.14), Zacks reports. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The company had revenue of $580.90 million during the quarter, compared to the consensus estimate of $616.66 million. During the same quarter in the prior year, the company earned $1.24 earnings per share. Franco-Nevada’s revenue was up 57.3% on a year-over-year basis.

Franco-Nevada Stock Performance

FNV stock traded down $3.29 during midday trading on Wednesday, reaching $237.45. The stock had a trading volume of 297,518 shares, compared to its average volume of 853,409. The firm has a fifty day simple moving average of $215.32 and a two-hundred day simple moving average of $235.65. Franco-Nevada has a 52-week low of $173.39 and a 52-week high of $285.67. The stock has a market cap of $45.80 billion, a PE ratio of 33.42, a P/E/G ratio of 2.03 and a beta of 0.35.

Franco-Nevada Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be given a $0.44 dividend. This represents a $1.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, September 10th. Franco-Nevada’s dividend payout ratio is presently 24.79%.

Institutional Investors Weigh In On Franco-Nevada

A number of institutional investors and hedge funds have recently modified their holdings of FNV. AQR Capital Management LLC purchased a new position in Franco-Nevada during the 1st quarter worth approximately $241,000. NewEdge Advisors LLC increased its stake in shares of Franco-Nevada by 16.7% in the first quarter. NewEdge Advisors LLC now owns 6,585 shares of the basic materials company’s stock worth $1,038,000 after acquiring an additional 943 shares during the period. Intech Investment Management LLC raised its holdings in shares of Franco-Nevada by 118.3% during the first quarter. Intech Investment Management LLC now owns 9,286 shares of the basic materials company’s stock worth $1,460,000 after purchasing an additional 5,032 shares during the last quarter. Acadian Asset Management LLC lifted its position in Franco-Nevada by 800.0% during the first quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company’s stock valued at $424,000 after purchasing an additional 2,400 shares during the period. Finally, Marshall Wace LLP acquired a new position in Franco-Nevada during the second quarter valued at $1,477,000. Institutional investors and hedge funds own 77.06% of the company’s stock.

Analysts Set New Price Targets

FNV has been the subject of a number of analyst reports. TD Securities upgraded Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 price objective for the company in a research note on Wednesday, May 20th. Royal Bank Of Canada cut their target price on Franco-Nevada from $295.00 to $285.00 and set an “outperform” rating on the stock in a research note on Thursday, July 9th. Weiss Ratings downgraded shares of Franco-Nevada from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, June 8th. Wall Street Zen lowered shares of Franco-Nevada from a “buy” rating to a “hold” rating in a research report on Monday, June 1st. Finally, Jefferies Financial Group lowered their price target on shares of Franco-Nevada from $258.00 to $245.00 and set a “hold” rating on the stock in a report on Monday, July 6th. Eleven equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $273.40.

Franco-Nevada Company Profile

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.