First Majestic Silver Earnings: Here’s Why the Stock is Up Now
First Majestic Silver Corp. (NYSE:AG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.60%.
First Majestic Silver Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 63.16% to $0.07 in the quarter versus EPS of $0.19 in the year-earlier quarter.
Revenue: Decreased 11.63% to $48.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: First Majestic Silver Corp. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.1. It beat the average revenue estimate of $47.12 million.
Quoting Management: “Despite the weak silver price environment, First Majestic achieved a new quarterly record in silver production and continues to demonstrate its commitment to maximizing shareholder value,” said Keith Neumeyer , CEO and President of First Majestic. “The silver price fell 31% during the second quarter which is equal to the largest quarterly drop during the 2008 financial crisis and the third largest quarterly drop in the past 50 years. As such, management decided to suspend a portion of silver sales to await a rebound in prices. While the suspension had a negative impact on this quarter’s revenues and earnings, we are confident the silver price will revert back to the mean in the near future. In the meantime, regular sales are now taking place in order to allow silver inventories to return to normal levels.”
Key Stats (on next page)…