Gold streaming and royalty company Franco-Nevada's (FNV 1.16%) stock had a bit of luster on the second trading day of the week. Its shares closed Tuesday up by almost 1.3% on a pair of analyst price-target hikes following the company's latest earnings release. That little pop was sufficient to edge past the S&P 500 index, which closed 1.1% higher.
Not one but two price-target bumps
Not one but two pundits following Franco-Nevada upped their fair value assessment on the stock; interestingly enough, each raised it by the same amount to the same level. TD Securities' Derick Ma and Scotiabank's Tanya Jakusconek now feel it's worth $184 per share (from their previous $182). However, the pair maintained their respective hold recommendations.
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They did this despite the fact that Franco-Nevada delivered a second quarter featuring quite a convincing bottom-line beat.
Reporting that quarter's results Monday morning, Franco-Nevada said it achieved a new quarterly revenue figure of $369.4 million, which was an impressive 42% higher year over year. Generally accepted accounting principles (GAAP) net income more than tripled, landing at $247.1 million ($1.28 per share).
Despite the significant growth, Franco-Nevada's key fundamentals weren't too far off the consensus analyst estimates. These called for $375.9 million on the top line and $1.13 per share for GAAP net income.
Golden guidance
In its earnings release, management attributed the gains to higher prices for gold overall and the acquisition of a royalty in a Canadian mine
The company also proffered volume sales guidance for the entirety of 2025. It's anticipating its precious metal sales will range from 385,000 to 425,000 gold equivalent ounces (GEOs) for the year, with total GEOs landing at 465,000 to 525,000. The respective totals for the first six months of the year were 193,072 and 238,678. Franco-Nevada did not provide any financial guidance.
