First Majestic Silver (NYSE:AG) Issues Earnings Results, Hits Estimates

First Majestic Silver (NYSE:AG) (TSE:FR) issued its quarterly earnings results on Thursday. The mining company reported $0.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.19, reports. First Majestic Silver had a net margin of 21.18% and a return on equity of 13.36%. The firm had revenue of $394.10 million for the quarter, compared to analyst estimates of $390.00 million.

Here are the key takeaways from First Majestic Silver’s conference call:

• Q3 revenue rose 38% year over year to $394 million, while EBITDA increased 78% to $228 million. Silver production was 3.4 million ounces and gold production was 30,000 ounces; management said cash flows remained robust despite lower metal prices.
• First Majestic reported roughly $1.3 billion in liquidity, declared a record dividend and repurchased 1.3 million shares to date. The company is also making its largest-ever annual capital investment, according to management.
• Growth projects are advancing: Santa Elena’s plant expansion is progressing, Santo Niño development began earlier than expected, and Jerritt Canyon remains on track for its targeted restart milestones. Management said Jerritt’s hiring, underground development and equipment orders are progressing, though further guidance is forthcoming.
• A labor disruption at San Dimas caused 12 days of lost Q3 production and remained unresolved at the time of the call. The dispute centers on the company’s refusal to cover workers’ income taxes on bonuses.
• Management said progress is being made toward resolving the Mexican tax dispute and that the NAFTA arbitration was dropped, but any payments would follow a lengthy process and timing remains uncertain. AISC is also higher, partly because of lower cutoff grades and profit-linked employee payments; management said per-ton costs were stable and margins were expanding.

First Majestic Silver Stock Up 1.8%

NYSE:AG traded up $0.27 on Friday, hitting $15.16. The stock had a trading volume of 11,628,804 shares, compared to its average volume of 9,689,074. The company has a quick ratio of 2.38, a current ratio of 2.57 and a debt-to-equity ratio of 0.08. First Majestic Silver has a 52 week low of $10.72 and a 52 week high of $32.03. The business’s fifty day moving average is $17.63 and its 200 day moving average is $19.86. The company has a market cap of $7.48 billion, a PE ratio of 16.09 and a beta of 0.98.

First Majestic Silver Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 30th. Stockholders of record on Monday, November 16th will be issued a dividend of $0.0142 per share. This is a decrease from First Majestic Silver’s previous quarterly dividend of $0.0152. This represents a $0.06 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Monday, November 16th. First Majestic Silver’s dividend payout ratio (DPR) is currently 8.45%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on AG. Weiss Ratings reaffirmed a “hold (c)” rating on shares of First Majestic Silver in a research note on Wednesday, September 2nd. ATB Cormark Capital Markets raised First Majestic Silver from a “hold” rating to a “moderate buy” rating in a research note on Friday, July 10th. Scotiabank dropped their target price on shares of First Majestic Silver from $23.00 to $22.50 and set a “sector perform” rating for the company in a report on Tuesday, July 14th. Zacks Research downgraded shares of First Majestic Silver from a “hold” rating to a “strong sell” rating in a research note on Monday, October 19th. Finally, HC Wainwright decreased their price target on shares of First Majestic Silver from $25.50 to $25.00 and set a “buy” rating on the stock in a report on Friday. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $23.75.

First Majestic Silver Company Profile

First Majestic Silver Corp. is a mining company focused on the exploration, development, and production of silver and gold. The company operates producing mines in Mexico and the United States and sells silver bullion and related products through its in-house First Mint division.

First Majestic’s Mexican operations include the San Dimas Silver/Gold Mine in Durango, the Santa Elena Silver/Gold Mine in Sonora, and the La Encantada Silver Mine in Coahuila. The company also owns the Jerritt Canyon Gold Mine in Nevada, although operations there have been suspended while First Majestic evaluates its future.

Founded in 2002 and headquartered in Vancouver, British Columbia, First Majestic has historically concentrated its growth strategy on acquiring and developing precious-metals assets in the Americas.