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Silver Mining Stocks' Q2 Earnings Queued for Aug 10: SLW, AG, SSRI
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The second-quarter earnings season is drawing to a close, with around 87.7% of the S&P 500 members having reported their results as of Aug 5, 2016. As of now, 70.7% of these members beat EPS estimates while 52.7% surpassed revenue expectations. Per the report, the companies that have so far reported recorded a 4.1% decline in earnings due to a 0.9% dip in revenues, both on a year-over-year basis. (Read more: Retail Sector's Disappointing Q2 Earnings Season)
Within the Zacks Industry classification, the silver mining industry falls under the broader Basic Materials sector (one of the 16 Zacks sectors). Our Q2 scorecard shows that the sector has reported negative results so far with an 11.8% fall in earnings and a revenue decline of 9.1%. Considering all the companies that are yet to report, this sector is expected to witness an 11.8% earnings decline in Q2.
The mining industry witnessed a persistent weakness due to the global slump in commodities last year. However, this year, silver’s strong momentum is backed by a spate of factors including uncertainty related to the Fed’s interest rate policy, slowdown in China, volatile equity markets and Brexit-induced tension. Investors’ interest has revived in silver mining stocks as it serves as a safe-haven asset.
Solid demand for the metal will also escalate price appreciation. Silver has multiple industrial applications and, hence, grows on industrial demand, which is expected to rise this year. Demand in jewelry fabrication is also projected to go up and coin demand will equally be healthy in 2016.
The silver mining industry, which currently holds a Zacks Industry Rank of 33, reflects a sturdy position.
Among the companies scheduled to report this week, let’s see what’s in store for these major silver mining stocks gearing up to release their second-quarter scores on Aug 10, 2016.
Silver Wheaton Corp. operates as a precious metals streaming company worldwide. It is the only mining company with 100% of its revenue from silver production. The company had posted a negative surprise of 23.08% in the previous quarter. Silver Wheaton has a mixed earnings track record and delivered an average negative earnings surprise of 3.53% over the trailing four quarters.
The Zacks Consensus Estimate for the quarter is pegged at 14 cents. Further, its Zacks Rank #3 (Hold) and Earnings ESP of 0.00% do not conclusively show that the stock is likely to beat earnings estimates this quarter.
First Majestic Silver Corp. (AG - Free Report) is engaged in the production, development, exploration, and acquisition of silver mines in Mexico. The company has a mixed earnings track record. First Majestic Silver has notably delivered a negative earnings surprise of 55.56% on an average over the last four quarters.
The Zacks Consensus Estimate for the quarter is pegged at 4 cents. It is difficult to conclusively predict an earnings beat for the company this quarter, given the company’s Zacks Rank #3 and Earnings ESP of 0.00%.
Silver Standard Resources Inc. is focused on the acquisition, exploration and development of silver-dominant projects. Its performance in the recent past has been mostly disappointing, with the company lagging expectations in each of the trailing four quarters, with an average negative surprise of 111.90%. Last quarter, the company posted a negative surprise of 8.33%.
The Zacks Consensus Estimate for the quarter is pegged at 14 cents. Once again, it is difficult to conclusively predict an earnings beat this quarter owing to the stock’s Zacks Rank #3 and Earnings ESP of 0.00%.
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Silver Mining Stocks' Q2 Earnings Queued for Aug 10: SLW, AG, SSRI
The second-quarter earnings season is drawing to a close, with around 87.7% of the S&P 500 members having reported their results as of Aug 5, 2016. As of now, 70.7% of these members beat EPS estimates while 52.7% surpassed revenue expectations. Per the report, the companies that have so far reported recorded a 4.1% decline in earnings due to a 0.9% dip in revenues, both on a year-over-year basis. (Read more: Retail Sector's Disappointing Q2 Earnings Season)
Within the Zacks Industry classification, the silver mining industry falls under the broader Basic Materials sector (one of the 16 Zacks sectors). Our Q2 scorecard shows that the sector has reported negative results so far with an 11.8% fall in earnings and a revenue decline of 9.1%. Considering all the companies that are yet to report, this sector is expected to witness an 11.8% earnings decline in Q2.
The mining industry witnessed a persistent weakness due to the global slump in commodities last year. However, this year, silver’s strong momentum is backed by a spate of factors including uncertainty related to the Fed’s interest rate policy, slowdown in China, volatile equity markets and Brexit-induced tension. Investors’ interest has revived in silver mining stocks as it serves as a safe-haven asset.
Solid demand for the metal will also escalate price appreciation. Silver has multiple industrial applications and, hence, grows on industrial demand, which is expected to rise this year. Demand in jewelry fabrication is also projected to go up and coin demand will equally be healthy in 2016.
The silver mining industry, which currently holds a Zacks Industry Rank of 33, reflects a sturdy position.
Among the companies scheduled to report this week, let’s see what’s in store for these major silver mining stocks gearing up to release their second-quarter scores on Aug 10, 2016.
Silver Wheaton Corp. operates as a precious metals streaming company worldwide. It is the only mining company with 100% of its revenue from silver production. The company had posted a negative surprise of 23.08% in the previous quarter. Silver Wheaton has a mixed earnings track record and delivered an average negative earnings surprise of 3.53% over the trailing four quarters.
SILVER WHEATON Price and EPS Surprise
SILVER WHEATON Price and EPS Surprise | SILVER WHEATON Quote
The Zacks Consensus Estimate for the quarter is pegged at 14 cents. Further, its Zacks Rank #3 (Hold) and Earnings ESP of 0.00% do not conclusively show that the stock is likely to beat earnings estimates this quarter.
First Majestic Silver Corp. (AG - Free Report) is engaged in the production, development, exploration, and acquisition of silver mines in Mexico. The company has a mixed earnings track record. First Majestic Silver has notably delivered a negative earnings surprise of 55.56% on an average over the last four quarters.
FIRST MAJESTIC Price and EPS Surprise
FIRST MAJESTIC Price and EPS Surprise | FIRST MAJESTIC Quote
The Zacks Consensus Estimate for the quarter is pegged at 4 cents. It is difficult to conclusively predict an earnings beat for the company this quarter, given the company’s Zacks Rank #3 and Earnings ESP of 0.00%.
Silver Standard Resources Inc. is focused on the acquisition, exploration and development of silver-dominant projects. Its performance in the recent past has been mostly disappointing, with the company lagging expectations in each of the trailing four quarters, with an average negative surprise of 111.90%. Last quarter, the company posted a negative surprise of 8.33%.
SILVER STD RES Price and EPS Surprise
SILVER STD RES Price and EPS Surprise | SILVER STD RES Quote
The Zacks Consensus Estimate for the quarter is pegged at 14 cents. Once again, it is difficult to conclusively predict an earnings beat this quarter owing to the stock’s Zacks Rank #3 and Earnings ESP of 0.00%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>