PrairieSky Royalty (TSE:PSK), a company that makes its money from oil & gas royalties across Canada, reported its Q2-2023 earnings results after market close today. PSK’s results could have been better, as both revenue and earnings per share (EPS) missed expectations.
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Revenues for Q2 2023 reached C$117.4 million, below the expectations of C$120 million but notably lower than last year’s figure of C$198.1 million. Additionally, earnings per diluted share came in at C$0.20 (expectations were C$0.23), below last year’s EPS of C$0.46.
Moreover, funds from operations — known as FFO, a cash-flow metric — for the quarter reached C$91.3 million or C$0.38 per share (43% lower year-over-year).
On a positive note, royalty production grew 3% year-over-year, and the company’s C$0.24 dividend is well-covered, with a payout ratio of 63%.
Is PSK Stock a Buy, According to Analysts?
PrairieSky stock has a Moderate Buy consensus rating from analysts based on three Buys and three Hold ratings assigned in the past three months. At $26.50, the average PSK stock price target implies 3.8% upside potential.
