Canada's First Majestic Silver Q3 adjusted EPS rises 171%, meets estimates

First Majestic Silver

Thu 13:06

Overview
Canada silver and gold miner's Q3 revenue rose 38% yr/yr
Adjusted EPS for Q3 met analyst expectations, up 171% yr/yr
Company declared Q3 dividend nearly three times higher yr/yr; repurchased 100,000 shares

Outlook
Company withdraws San Dimas annual production and cost guidance due to ongoing labour disruption
San Dimas annual guidance to be reassessed once there is visibility on resumption of operations
Company says impact of San Dimas disruption will depend on duration and timing of restart

Result Drivers
HIGHER METAL PRICES - Co said revenue growth was primarily driven by a 59% higher realized silver price and a 23% higher realized gold price yr/yr
INVENTORY SALES MIX - Revenue growth was supported by increased silver ounces sold at La Encantada and Santa Elena, partly offset by fewer ounces sold from other operations
HIGHER COSTS - Cash costs and AISC per silver equivalent ounce rose sharply, mainly due to lower production, labor disruptions at San Dimas, and higher direct production costs

Company press release: ID:nNFC7kSpNy

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$394.10 mln
$423 mln (1 Analyst)
Q3 Adjusted EPS
Meet
$0.19
$0.19 (4 Analysts)
Q3 Adjusted Net Income
 
$92.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"
Wall Street's median 12-month price target for First Majestic Silver Corp. is C$31.85, about 48.1% above its November 4 closing price of C$21.51
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Nov 4 - Canada's Pan American Silver Q3 adjusted EPS misses estimates as silver, gold production drop below outlook  
Nov 5 - Canada's Lundin Gold Q3 revenue rises on record gold production, higher prices
Nov 4 - Canada's B2Gold lowers annual all-in sustaining cost guidance after strong gold production in Q3

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)