Sprott (NYSE:SII) Announces Quarterly Earnings Results

Sprott (NYSE:SII) posted its earnings results on Wednesday. The company reported $0.86 EPS for the quarter, missing the consensus estimate of $1.03 by ($0.17), Zacks reports. Sprott had a net margin of 26.36% and a return on equity of 28.40%. The firm had revenue of $66.88 million during the quarter, compared to the consensus estimate of $72.67 million.

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 Stock Down 0.4%

SII traded down $0.44 during midday trading on Thursday, hitting $112.30. 198,824 shares of the company were exchanged, compared to its average volume of 196,959. The firm has a market capitalization of $2.89 billion, a P/E ratio of 27.52 and a beta of 0.96. Sprott has a 1-year low of $80.53 and a 1-year high of $169.63. The firm’s 50 day moving average price is $119.08 and its 200-day moving average price is $126.52.

Sprott Increases Dividend

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

Wall Street Analyst Weigh In

SII has been the subject of several recent research reports. TD Securities reaffirmed a “hold” rating on shares of Sprott in a research note on Thursday, August 6th. Wall Street Zen downgraded shares of Sprott from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings raised shares of Sprott from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $230.00.

About Sprott

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.