First Majestic Silver (NYSE:AG) Posts Quarterly Earnings Results, Meets Expectations

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

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 Price Performance

AG stock opened at $15.16 on Friday. First Majestic Silver has a 12 month low of $10.72 and a 12 month high of $32.03. The company has a 50-day moving average price of $17.63 and a 200 day moving average price of $19.86. The stock has a market cap of $7.48 billion, a PE ratio of 18.95 and a beta of 0.98. The company has a current ratio of 2.57, a quick ratio of 2.38 and a debt-to-equity ratio of 0.08.

First Majestic Silver Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 30th. Shareholders of record on Monday, November 16th will be issued a $0.0142 dividend. The ex-dividend date is Monday, November 16th. This represents a $0.06 dividend on an annualized basis and a yield of 0.4%. This is a decrease from First Majestic Silver’s previous quarterly dividend of $0.0152. First Majestic Silver’s payout ratio is presently 8.45%.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on AG. Weiss Ratings reaffirmed a “hold (c)” rating on shares of First Majestic Silver in a research report on Wednesday, September 2nd. Wall Street Zen lowered First Majestic Silver from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Scotiabank decreased their price target on First Majestic Silver from $23.00 to $22.50 and set a “sector perform” rating on the stock in a research note on Tuesday, July 14th. HC Wainwright lowered their target price on shares of First Majestic Silver from $25.50 to $25.00 and set a “buy” rating on the stock in a research report on Friday. Finally, ATB Cormark Capital Markets raised shares of First Majestic Silver from a “hold” rating to a “moderate buy” rating in a report on Friday, July 10th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average 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.