What’s behind Franco-Nevada’s (FNV) 10% Surge Following Latest Earnings Report?

Investors in Franco-Nevada (FNV) have seen a positive trend in the stock performance over the past month, with shares rising by about 10%, outperforming the S&P 500. The question now is whether this upward momentum will continue leading up to the next earnings release, or if a pullback is on the horizon.

In the most recent earnings report for the fourth quarter of 2023, Franco-Nevada reported adjusted earnings per share (EPS) of 90 cents, exceeding the Zacks Consensus Estimate of 80 cents. Despite the positive earnings beat, the company saw a decline in sales year-over-year, primarily due to lower prices of gas, platinum group metals, and oil.

Looking ahead, Franco-Nevada provided guidance for the upcoming year, expecting total Gold Equivalent Ounces (GEOs) between 480,000 and 540,000 in 2024. The company’s financial position remains strong, with $1.4 billion in cash and no debt, allowing for continued portfolio expansion and dividend payouts.

However, estimates for Franco-Nevada have been trending downward in the past month, with a consensus estimate shift of -11.25%. With a Zacks Rank #4 (Sell) and an overall VGM Score of F, the stock may deliver a below-average return in the coming months.

Comparatively, another player in the same industry, B2Gold (BTG), has also seen a positive performance in the past month, with a 5.2% gain. While B2Gold’s revenues declined in the last reported quarter, the company holds a Zacks Rank #3 (Hold) and a VGM Score of B.

As investors await the next earnings releases from both Franco-Nevada and B2Gold, it will be interesting to see how these industry players continue to navigate market conditions and deliver results in the coming months.