On Tuesday, Sandstorm Gold (SAND) (TSE: SSL) reported its preliminary results for second-quarter sales. The company sold 19,200 gold equivalent ounces, compared to 18,004 in the prior year’s second quarter.
In addition, total revenues came in at $36 million, which is a record for SAND and is comprised of sales, royalties, and other income. Compared to the second quarter of 2021, sales grew roughly 11.5% from $32.3 million. Nonetheless, the stock finished 3.5% lower today, as falling gold prices likely dragged the stock down.
Unfortunately, no preliminary earnings-per-share results were released. Currently, analysts are expecting net income to come in at $0.05 on a per-share basis. However, it’s worth noting that in the past eight quarters, Sandstorm has beat estimates only one time.
Nevertheless, the company appears to be reasonably predictable, as the actual results tend to be very close to the estimates. Indeed, analyst targets were met four times.
Investor Sentiment Could be Better
The sentiment among TipRanks investors is currently negative. Out of the 540,674 portfolios tracked by TipRanks, less than 0.1% hold Sandstorm. However, the average TipRanks portfolio weighting allocated towards SAND among those who do have a position is 4.34%. This suggests that investors of the company are fairly confident about its future prospects.
Furthermore, there have been minimal portfolio changes in the last 30 days, as 0.9% of those holding the stock decreased their positions. When looking at the past seven days, investors increased their holdings by 0.3%.
Analyst Recommendations on SAND Stock
Sandstorm has a Moderate Buy consensus rating based on five Buys and two Holds assigned in the past three months. The average SAND price target of $9.77 implies 65% upside potential.
Final Thoughts – Sandstorm Gold Looks Decent
It appears that Sandstorm had a solid quarter as investors await the full results to be released. The consensus estimate of $0.05 per share should be close to the actual results since the company appears to be quite predictable.
This level of predictability is quite rare for commodity-based companies, and it highlights the advantages of investing in royalty companies.
