Sprott (NYSE:SII) Releases Earnings Results, Misses Estimates By $0.01 EPS

Sprott (NYSE:SII) posted its quarterly earnings data on Wednesday. The company reported $1.33 EPS for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.01), RTT News reports. Sprott had a return on equity of 28.94% and a net margin of 26.36%.The business had revenue of $71.78 million for the quarter, compared to analyst estimates of $82.45 million. During the same quarter in the prior year, the company earned $0.52 earnings per share.

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

• Precious-metals volatility pressured results: Gold fell 14.1% and silver 22% in the quarter, driving a CAD 9.5 billion decline in AUM to CAD 55.6 billion and CAD 400 million of net redemptions, primarily from physical precious-metals trusts.
• Despite the quarterly pullback, average AUM rose 70% year over year to CAD 63.9 billion, while adjusted EBITDA doubled to CAD 50.8 million and net income increased to CAD 34.3 million, reflecting higher average AUM and operating leverage.
• Critical-materials products remained a growth area, generating positive net sales even in a difficult market. Management highlighted continued investor interest in copper, uranium, and rare earths, with the Rare Earths ETF Ex-China reaching CAD 50 million in assets in 32 trading days.
• The company reported a 71% adjusted EBITDA margin, a debt-free balance sheet, strong liquidity, and continued share repurchases that become more aggressive at lower stock prices. Management also expects to close its fourth private lending fund sometime in 2027.

Sprott Price Performance

SII stock traded up $3.74 during midday trading on Friday, reaching $116.05. 120,733 shares of the company were exchanged, compared to its average volume of 218,202. The business has a 50-day moving average price of $113.99 and a two-hundred day moving average price of $129.41. Sprott has a one year low of $61.94 and a one year high of $169.63. The firm has a market capitalization of $2.99 billion, a price-to-earnings ratio of 28.45 and a beta of 0.83.

Sprott Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.60 annualized dividend and a yield of 1.4%. Sprott’s dividend payout ratio (DPR) is currently 48.93%.

Institutional Trading of Sprott

A number of hedge funds have recently modified their holdings of SII. Stansberry Asset Management LLC acquired a new position in shares of Sprott in the fourth quarter valued at approximately $246,000. FIL Ltd acquired a new stake in Sprott during the 4th quarter worth approximately $223,000. Rothschild Wealth LLC bought a new stake in Sprott in the 4th quarter valued at $211,000. Summit Financial LLC bought a new stake in Sprott in the 4th quarter valued at $220,000. Finally, Focus Partners Wealth acquired a new position in Sprott in the 3rd quarter valued at $232,000. Institutional investors and hedge funds own 28.30% of the company’s stock.

Wall Street Analysts Forecast Growth

SII has been the topic of a number of analyst reports. Wall Street Zen upgraded Sprott from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Royal Bank Of Canada raised their target price on shares of Sprott from $218.00 to $230.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. TD Securities restated a “hold” rating on shares of Sprott in a report on Thursday. Finally, Weiss Ratings lowered shares of Sprott from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $230.00.

Sprott Company Profile

Sprott Inc is a Toronto?based alternative asset manager specializing in precious metals, real assets and related investment vehicles. Founded in 1981 by Eric Sprott, the firm has built a reputation for offering physically backed bullion trusts, exchange?traded funds (ETFs), mutual funds and private managed accounts that provide exposure to gold, silver, platinum and other hard assets. Sprott’s product lineup also includes royalty and streaming strategies, which grant investors long?term participation in mining project cash flows without direct operational risk.

In addition to its flagship physical bullion trusts, Sprott offers actively managed equity portfolios that focus on companies engaged in the exploration, development and production of precious metals.