Franco-Nevada Corp's stock plummeted by 5.09% on Wednesday, November 7th, after the precious metals royalty company reported disappointing financial results for the quarter ended January 1, 2024. The company missed analysts' expectations on both earnings per share and revenue, with EPS of $0.80 falling short of the $0.86 consensus estimate, and revenue of $275.5 million trailing the projected $283.5 million.
The earnings miss appears to have dampened investor sentiment, as Franco-Nevada's shares were sold off heavily following the report's release. Missing key financial targets can be viewed negatively by the market, as it suggests the company's performance is not meeting expectations. This disappointment often results in a sell-off, as some investors may choose to exit their positions or adjust their holdings accordingly.
According to the earnings report, analysts had been revising their estimates lower in recent months, with four analysts negatively revising their earnings estimates in the last 30 days. However, the overall analyst recommendation on the stock remains a "buy," with three "strong buy" or "buy" ratings, three "hold" ratings, and one "sell" or "strong sell" rating. The median 12-month price target for Franco-Nevada is $139.00.
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