First Majestic Silver Corp. (NYSE:AG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
First Majestic Silver Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 11.54% to $0.23 in the quarter versus EPS of $0.26 in the year-earlier quarter.
Revenue: Rose 16.05% to $67.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: First Majestic Silver Corp. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $72.78 million.
Quoting Management: Keith Neumeyer , President and CEO of First Majestic states, “Despite the recent fall in silver prices we remain committed to aggressively growing our business while at the same time monitoring our investments and our production costs. This year marks a pivotal year for First Majestic with four major expansion projects underway simultaneously. These expansions remain on track and will set the stage for major growth in the coming years. However, we need to be sensitive to the current market conditions and be smart about our use of capital. We are committed as usual to focus on cost reductions and capital optimization without affecting our aggressive growth plans.”
Key Stats (on next page)…
Revenue decreased 5.51% from $71.01 million in the previous quarter. EPS increased 21.05% from $0.19 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.38. For the current year, the average estimate has moved down from a profit of $1.79 to a profit of $0.91 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)