Back to top

Image: Bigstock

First Majestic (AG) to Report Q3 Earnings: What's in Store?

Read MoreHide Full Article

First Majestic Silver Corp. (AG - Free Report) is slated to report third-quarter 2020 results on Nov 5, after the closing bell.

Q3 Estimates

The Zacks Consensus Estimate for First Majestic’s third-quarter earnings is currently pegged at 13 cents, suggesting a 116.7% jump from the year-ago quarter. The estimate has been revised 18% upward over the past 30 days.

First Majestic Silver Corp. Price and EPS Surprise

First Majestic Silver Corp. Price and EPS Surprise

Earnings Whispers

Our proven model conclusively predicts a beat for First Majestic this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for First Majestic is +12%.

Zacks Rank: The company currently carries a Zacks Rank #3.

Factors to Note

During the September-end quarter, First Majestic recorded consolidated production of 5.2 million silver equivalent ounce, comprising 3.2 million ounces of silver and 25,771 ounces of gold. Silver and gold production increased 72% and 63% sequentially, respectively, aided by impressive operating performances across its three mines.

Gold prices have been up 23.6% so far this year, fueled by the coronavirus pandemic and rate cuts. Silver prices have also flared up 32.7%, year to date. Given that industrial applications account for 60% of the global silver consumption, the slowdown in industrial activity amid the pandemic had earlier thwarted demand for the white metal. Lately, silver has been gaining on the back of recovery in industrial activity as governments continue relaxing the restrictions. Higher production numbers, and rising gold and silver prices, during the third quarter are likely to have aided the company’s third-quarter performance.

Price Performance

First Majestic’s shares have appreciated 24.9% over the past six months, compared to the industry’s rally of 46.6%.

Other Stocks With Favorable Combinations

Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post earnings beat this quarter:

Avient Corporation (AVNT - Free Report) currently carries a Zacks Rank #2 and has an Earnings ESP of +1.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Koppers Holdings Inc. (KOP - Free Report) has an Earnings ESP of +19.27% and holds a Zacks Rank of 2 currently.

Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +5.73% and carries a Zacks Rank #3, at present.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>