Sprott (NYSE:SII) Posts Quarterly Earnings Results, Misses Expectations By $0.17 EPS

Sprott (NYSE:SII) posted its earnings results on Wednesday. The company reported $0.86 earnings per share for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.17), Zacks reports. Sprott had a return on equity of 28.40% and a net margin of 26.36%.

Here are the key takeaways from Sprott’s conference call:

• Profitability rose sharply: Third-quarter adjusted EBITDA increased 44% year over year to $46 million, while net income rose 67% to $22 million. Average AUM was up 39% year over year to $58.8 billion.
• Flows remained uneven: AUM ended the quarter at $57.3 billion, up 3% from June but down 4% year over year, with $200 million in net redemptions, primarily from physical trusts. The Physical Silver Trust saw $421 million in outflows, partly attributed by management to silver-market weakness and India’s import restrictions.
• Critical materials strategies attracted investors: The company reported about $200 million in net sales for these strategies, while investors added to uranium and rare-earth products. Management highlighted long-term supply constraints and said its uranium assets under management have grown to more than $10 billion.
• Shareholder returns and financial flexibility strengthened: The board raised the regular quarterly dividend by 25%, its third consecutive year of double-digit growth. Sprott ended September with more than $200 million in cash, no debt, and year-to-date share repurchases approaching 1% of shares outstanding.
• Management expects volatile markets but remains constructive on metals: Executives attributed precious-metals pressure to liquidity and interest-rate-related selling, while arguing that fiscal and geopolitical risks support the longer-term outlook. They cautioned that commodity prices and investor participation are difficult to predict.

Sprott Price Performance

Shares of SII stock traded up $7.80 during trading hours on Wednesday, hitting $112.95. The stock had a trading volume of 302,855 shares, compared to its average volume of 107,142. The stock’s 50 day moving average is $119.08 and its 200 day moving average is $126.52. The firm has a market capitalization of $2.90 billion, a PE ratio of 27.69 and a beta of 0.96. Sprott has a twelve month low of $78.79 and a twelve month high of $169.63.

Sprott Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Monday, November 16th. This is a positive change from Sprott’s previous quarterly dividend of $0.40. This represents a $2.00 annualized dividend and a dividend yield of 1.8%. Sprott’s dividend payout ratio is 39.22%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. TD Securities reaffirmed a “hold” rating on shares of Sprott in a research report on Thursday, August 6th. Wall Street Zen cut shares of Sprott from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Weiss Ratings raised Sprott from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $230.00.

Sprott Company Profile

Sprott Inc is an alternative asset manager focused on precious metals and other real assets. The company provides investment solutions designed to give investors exposure to gold, silver, uranium, energy transition materials, and natural resources.

Its offerings include exchange-traded funds, closed-end funds, physical bullion trusts, managed accounts, and private-market strategies. Sprott’s products may invest directly in physical commodities, resource companies, or assets connected to the natural resources and real asset sectors.

Founded in 1981, Sprott serves institutional and individual investors across North America and international markets.