FY2027 EPS Forecast for Franco-Nevada Decreased by Analyst

Key Points

• Scotiabank lowered Franco-Nevada’s FY2027 EPS forecast to $8.72 from $9.09, while maintaining a “Sector Perform” rating and $274 price target. Analysts’ consensus rating remains “Moderate Buy,” with a $273.40 average price target.
• Franco-Nevada reported quarterly EPS of $1.81, missing the $1.95 consensus estimate, and revenue of $580.9 million versus expectations of $616.66 million. Revenue nevertheless increased 57.3% year over year.
• The company declared a quarterly dividend of $0.44 per share, representing an annualized dividend of $1.76 and a 0.7% yield; institutional investors own approximately 77.06% of the stock.

Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV - Investment analysts at Scotiabank lowered their FY2027 earnings per share (EPS) estimates for shares of Franco-Nevada in a note issued to investors on Wednesday, August 19th. Scotiabank analyst T. Jakusconek now expects that the basic materials company will earn $8.72 per share for the year, down from their prior estimate of $9.09. Scotiabank currently has a "Sector Perform" rating and a $274.00 target price on the stock. The consensus estimate for Franco-Nevada's current full-year earnings is $7.60 per share.

Several other research firms also recently issued reports on FNV. Bank of America decreased their price objective on shares of Franco-Nevada from $276.00 to $238.00 and set a "neutral" rating for the company in a report on Thursday, July 9th. Wall Street Zen downgraded Franco-Nevada from a "buy" rating to a "hold" rating in a research report on Monday, June 1st. Weiss Ratings lowered Franco-Nevada from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. Canaccord Genuity Group raised Franco-Nevada from a "hold" rating to a "buy" rating in a research report on Wednesday, April 29th. Finally, National Bank Financial upgraded Franco-Nevada from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, May 13th. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Franco-Nevada has an average rating of "Moderate Buy" and a consensus price target of $273.40.

Franco-Nevada Stock Up 3.0%

Shares of FNV stock opened at $258.48 on Friday. Franco-Nevada has a 12 month low of $178.01 and a 12 month high of $285.67. The company has a market cap of $49.85 billion, a PE ratio of 33.79, a price-to-earnings-growth ratio of 2.29 and a beta of 0.35. The business's 50 day moving average is $218.45 and its two-hundred day moving average is $234.83.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last issued its quarterly earnings data on Tuesday, August 11th. The basic materials company reported $1.81 earnings per share for the quarter, missing analysts' consensus estimates of $1.95 by ($0.14). The company had revenue of $580.90 million during the quarter, compared to the consensus estimate of $616.66 million. Franco-Nevada had a net margin of 63.79% and a return on equity of 18.58%. The firm's revenue was up 57.3% on a year-over-year basis. During the same period in the previous year, the business posted $1.24 earnings per share.

Institutional Trading of Franco-Nevada

Institutional investors have recently modified their holdings of the company. Composition Wealth LLC grew its holdings in Franco-Nevada by 0.8% during the 4th quarter. Composition Wealth LLC now owns 6,108 shares of the basic materials company's stock worth $1,266,000 after acquiring an additional 49 shares during the last quarter. Clark Capital Management Group Inc. lifted its holdings in shares of Franco-Nevada by 1.0% during the fourth quarter. Clark Capital Management Group Inc. now owns 5,054 shares of the basic materials company's stock worth $1,048,000 after purchasing an additional 50 shares during the period. Syon Capital LLC grew its stake in shares of Franco-Nevada by 2.1% in the fourth quarter. Syon Capital LLC now owns 2,443 shares of the basic materials company's stock worth $506,000 after purchasing an additional 51 shares during the last quarter. Guardian Partners Inc. increased its holdings in Franco-Nevada by 3.2% in the fourth quarter. Guardian Partners Inc. now owns 1,692 shares of the basic materials company's stock valued at $351,000 after purchasing an additional 52 shares during the period. Finally, PFG Investments LLC raised its position in Franco-Nevada by 0.7% during the 1st quarter. PFG Investments LLC now owns 7,211 shares of the basic materials company's stock worth $1,782,000 after purchasing an additional 52 shares during the last quarter. Institutional investors and hedge funds own 77.06% of the company's stock.

Franco-Nevada Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.76 annualized dividend and a yield of 0.7%. Franco-Nevada's dividend payout ratio is 23.01%.

About Franco-Nevada

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.

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