Franco-Nevada (FNV) Up 10.3% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Franco-Nevada has shown strong performance with a 10.3% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Financial Performance - Franco-Nevada reported adjusted earnings of $1.24 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $1.10, marking a 65% year-over-year increase [2] - The company achieved record revenues of $369 million in Q2 2025, a 42% increase year-over-year, driven by high gold prices and contributions from Precious Metal assets [3] - Adjusted EBITDA surged 64.8% year-over-year to a record $366 million, with an adjusted EBITDA margin of 99%, up from 85.3% in the prior year [4] Sales and Production - Franco-Nevada sold 92,449 Gold Equivalent Ounces (GEOs) in Q2 2025, an increase from 82,350 GEOs in the same quarter last year [4] - The company expects total GEO sales for 2025 to range between 465,000 and 525,000 GEOs, supported by increased deliveries from various projects [6] Financial Position - At the end of Q2 2025, Franco-Nevada had $0.16 billion in cash, down from $1.45 billion at the end of 2024, but recorded an operating cash flow of $719 million in the first half of 2025, up from $373 million year-over-year [5] Market Sentiment and Estimates - Since the earnings release, there has been an upward trend in estimates, with the consensus estimate shifting by 10.78% [7] - Franco-Nevada holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [9] Industry Comparison - Franco-Nevada is part of the Zacks Mining - Gold industry, where another player, Royal Gold, reported revenues of $209.64 million, a year-over-year increase of 20.4% [10]