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First Majestic (AG) Q1 Earnings Miss, Revenues Improve Y/Y

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First Majestic Silver Corp (AG - Free Report) reported an adjusted loss per share of 2 cents in first-quarter 2022, which compared unfavorably with the Zacks Consensus Estimate of earnings of 6 cents. The company had reported earnings of 3 cents per share in the year-ago quarter.
 
Including one-time items, the company delivered earnings of 3 cents per share in the reported quarter compared with earnings per share of 1 cent in the year-earlier quarter.
 
First Majestic’s revenues improved 56% year over year to $157 million in the quarter under review. The upside was primarily driven by the acquisition of the Jerritt Canyon mine and initial production from the Ermitaño mine at Santa Elena.
 

First Majestic Silver Corp. Price, Consensus and EPS Surprise

First Majestic Silver Corp. Price, Consensus and EPS Surprise

First Majestic Silver Corp. price-consensus-eps-surprise-chart | First Majestic Silver Corp. Quote

Average realized silver price was $26.68 per payable silver equivalent ounce in the quarter, down 2% year over year.

First Majestic had earlier announced that total production in first-quarter 2022 reached 7.2 million silver equivalent ounces comprising 2.6 million ounces of silver and 58,891 ounces of gold. On a year-over-year basis, silver production was down 10%, while gold production soared 147%. Overall silver equivalent ounces improved 59% from the last-year quarter, primarily aided by the Jerritt Canyon buyout.

The company sold a record 156,200 ounces of silver bullion (representing approximately 6% of the silver production in the quarter) in First Majestic's bullion store. The total proceeds were $4.4 million, at an average price of $27.86 per ounce.

Operational Update

The company recorded cash costs per silver equivalent ounce of $14.94, up 18% from the year-ago quarter. Consolidated all-in sustaining costs (AISC) of $20.87 per silver equivalent ounce came in 8% higher than the prior-year quarter.
 
First Majestic reported a mine-operating profit of $15 million in the quarter, which reflected a 46% plunge from the year-ago quarter. Higher cost of sales and depreciation and depletion due to the addition of Jerritt Canyon, partially offset by an increase in silver and gold ounces sold, led to the decline in operating profit.

Financial Position

First Majestic ended the first quarter of 2022 with $193 million of cash in hand, lower than the $238 million at the end of 2021. Operating cash flow before movements in working capital and taxes was $35.3 million in the quarter under review compared with the prior year's $31.1 million.

Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of the company have fallen 53.6% in the past year compared with the industry’s decline of 43.1%.
 

Zacks Rank & Stocks to Consider

First Majestic currently carries a Zacks Rank #3 (Hold).
 
Some better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nutrien (NTR - Free Report) .
 
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average surprise being roughly 2.5%. STLD has gained around 17% in the past year.
 
Commercial Metals, flaunting a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
 
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 16%. CMC has gained around 12% in a year.
 
Nutrien, carrying a Zacks Rank #1 at present, has an expected earnings growth rate of 42.8% for the current year. NTR’s consensus estimate for earnings for the current year has been revised upward by 37% in the past 60 days.
 
Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 5.8%. NTR has rallied around 61% in a year.