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Endeavour Silver (EXK) Q4 Earnings & Revenues Beat Estimates

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Endeavour Silver Corporation (EXK - Free Report) reported earnings per share of 4 cents for fourth-quarter 2022, surpassing the Zacks Consensus Estimate of break-even earnings. This was attributed to increased silver sales throughout the quarter. EXK had reported break-even earnings in the fourth quarter of 2021.

Endeavour Silver’s revenues surged 69% year over year to $82 million and beat the Zacks Consensus Estimate of $44 million. This was mainly due to higher silver sales during the quarter. The average realized silver price was $21.86 per ounce in the quarter, down 7% year over year. The average realized gold price was down 2% to $1,783 per ounce in the quarter. EXK sold 2.8 million ounces of silver in the quarter (up 99% year over year) and 11,843 ounces of gold (up 36% year over year).  

Total production in the fourth quarter of 2022 was 2.66 million silver equivalent ounces, consisting of 1.83 million ounces of silver and 10,370 ounces of gold. Compared with the prior-year quarter, production was up 21%.

Endeavour Silver Corporation Price, Consensus and EPS Surprise

 

Endeavour Silver Corporation Price, Consensus and EPS Surprise

Endeavour Silver Corporation price-consensus-eps-surprise-chart | Endeavour Silver Corporation Quote

Operational Update

Endeavour Silver recorded cash costs per silver ounce of $11.65, up 35% from the year-ago quarter. Consolidated all-in sustaining costs (AISC) of $19.38 per silver equivalent ounce marked a 1% drop from the prior-year quarter.

EXK reported a mine-operating profit of $21.7 million in the quarter compared with $12.2 million in the year-ago period. EBITDA was $22.7 million, indicating a 111% improvement from $10.7 million in the year-ago quarter.

Financial Position

Endeavour Silver ended 2022 with $83.4 million cash in hand, down from $103 million held at the end of 2021. Cash generated from operating activities was around $55 million in 2022 compared with the prior-year’s $23.5 million.

2022 Performance

Endeavour Silver reported earnings per share of 3 cents in 2022, which was down 63% from the 8 cents reported in 2021, owing to inflationary pressures and lower realized silver price than the prior year. Revenues were up 27% year over year to $210 million in 2022 as higher silver ounces sold offset the impact of lower realized silver prices.

The company produced 5.96 million ounces of silver and 37,548 ounces of gold. Silver equivalent production for 2022 was around 9 million ounces, up 9% year over year. The same also surpassed the guidance of 7.6-8.0 million ounces.

Price Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Shares of EXK have fallen 36.5% over the past year compared with the industry's 32.4% decline.

Zacks Rank & Stocks to Consider

Endeavour Silver currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Air Liquide (AIQUY - Free Report) . CALM and RS currently sport a Zacks Rank #1 (Strong Buy), and AIQUY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 28.6% in the past year.

The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 37% in a year.

The Zacks Consensus Estimate for Air Liquide’s 2023 earnings per share is pegged at $1.34, indicating year-over-year growth of 20.7%. Earnings estimates have moved 7.2% north in the past 60 days. AIQUY’s shares have gained 7% in the past year.

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