Pan American Silver Corp. (NASDAQ:PAAS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.74%.
Pan American Silver Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 55.17% to $0.26 in the quarter versus EPS of $0.58 in the year-earlier quarter.
Revenue: Rose 6.2% to $243 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Pan American Silver Corp. reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.25. It missed the average revenue estimate of $257.03 million.
Quoting Management: Geoff Burns, President & CEO commented on the Company’s first quarter results, “We had a solid first quarter. Our silver and gold production was basically right on our forecast, while our cash costs were slightly lower as a result of better-than-expected base metal by-product production and some operating cost savings. Consequently, our operating cash flows and adjusted earnings were in line with our expectations. These strong financial results, have allowed us to continue to deliver sector-leading cash returns directly to our shareholders, paying $19 million in dividends and repurchasing and cancelling another 335,000 shares in the first quarter.” Mr. Burns continued, “Moving forward, we will be modestly adjusting our short-term plans over the balance of the year in response to the decline in the price of silver we witnessed in early April. I don’t envision any significant changes to our capital programs this year, as we are not engaged in any major construction projects, but we will be diligently looking for additional opportunities to trim our ongoing operating, exploration and G&A expenditures to try to offset some of the price decline. I am comforted to know that Pan American enters this period of lower prices with one of the strongest balance sheets in the sector, which puts us in a good position to weather lower prices and look aggressively for opportunities to strengthen our asset portfolio while asset valuations are depressed.”
Key Stats (on next page)…
Revenue decreased 1.75% from $247.34 million in the previous quarter. EPS decreased 27.78% from $0.36 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 $0.25. For the current year, the average estimate has moved down from a profit of $1.65 to a profit of $1.11 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)