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Silver Mining Stock Earnings Queued for Nov 8: HL, SSRI, ASM

SSRI HL ASM

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This year silver is shining bright gaining 31% so far. The precious white metal, currently at $18.22 an ounce, has even outshone gold’s 19% gain.

Worries over the global economy, Brexit-induced volatile equity markets, the Fed’s stance to maintain steady interest rates and the introduction of negative interest rates by several central banks escalated the safe haven appeal of precious metals like gold and silver.

Silver has varied industrial applications and is consequently driven by industrial demand. Industrial demand for silver is set to surge 54% from last year. On the other hand, global mine supply production is projected to fall 5% in 2016 – the first drop in global silver mine production since 2002. Thus, we are looking at a potential silver deficit, which in turn provides a solid ground for silver price gains this year. Further, price appreciation will be supported by a flight to safety amid volatile equity markets.

As per the Zacks Industry classification, the silver mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. As of Nov 4, the 85% of the companies in this sector that have reported so far have put up a 6.4% increase in earnings. Combining with the projected figures of the companies that are yet to report, the sector will log a growth of 4.2% in the quarter.

The improvement in the earnings picture has been broad based on this quarter. The 84.6% of the companies in the S&P 500 that have reported registered an earnings growth of 3.6%. Taking into consideration the estimates from the still-to-come 77 index members, total earnings in the quarter is now anticipated to go up 3% year over year on the back of 1.5% higher revenues. This compares favorably with the decline of 2.8% in the second quarter on flat revenues. Though the growth rate is meager, but compared to the declines for five consecutive quarters, this is definitely a positive sign. (Read more: Q3 Earnings Season: An Inflection Point).

Let’s see what’s in store for the silver miners that are set to report quarterly numbers on Nov 8.

Hecla Mining Co. (HL - Free Report) is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho. It is scheduled to release second-quarter numbers after the market closes.

The company delivered an earnings surprise of 250.00% in the last reported quarter. It has outperformed the Zacks Consensus Estimate in three of the trailing four quarters with an average positive earnings surprise of 131.25%.

HECLA MINING Price and EPS Surprise

 

HECLA MINING Price and EPS Surprise | HECLA MINING Quote

The Zacks Consensus Estimate for third-quarter is at 18 cents, reflecting a substantial 220% year-over-year growth. Hecla Mining recently reported its preliminary third-quarter production numbers. Silver and gold production has gone up 67% and 20% for the miner in the quarter. Given the robust performance of all its four mines, the company has hiked its silver production estimate to 16.25 million ounces for 2016. If achieved, this would be a record high for the company in its 125-year history.

Though Hecla Mining’s Zacks Rank #1 (Strong Buy) increases the predictive power of the ESP, its Earnings ESP of 0.00% makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Silver Standard Resources Inc. (SSRI - Free Report) engages in the acquisition, exploration, development and operation of precious metal resource properties in the Americas. The company will report third-quarter numbers after the closing bell.

The company delivered an earnings surprise of 78.57% in the last reported quarter. The company has an overall negative track record of earnings surprise, failing to match the Zacks Consensus Estimate in three of the trailing four quarters with an average negative earnings surprise of 35.12%.

SILVER STD RES Price and EPS Surprise
 

SILVER STD RES Price and EPS Surprise | SILVER STD RES Quote

The Zacks Consensus Estimate for third-quarter is pegged at 18 cents, reflecting a substantial 238.46% year-over-year growth.  As per Silver Standard’s preliminary third-quarter production report, the company produced a record quarterly production of 112,559 gold equivalent ounces. The company reported record quarterly silver production at its Pirquitas mine that produced 3.0 million ounces of silver. On a sequential basis, production increased 21% as the company milled more ore tonnes and achieved higher silver mill feed grade and recovery, on track to meet the upper end of its production guidance.

The combination of Silver Standard’s Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%, makes surprise prediction difficult.

Avino Silver & Gold Mines Ltd. (ASM - Free Report) engages in the production and sale of silver, gold, and copper bulk concentrates along with the exploration, evaluation and acquisition of mineral properties. It is scheduled to release third-quarter results after the market closes.

The company posted in-line results with the Zacks Consensus Estimate in the last reported quarter. It has an average negative earnings surprise of 77.78% over the trailing four quarters.

AVINO SILVER&GD Price and EPS Surprise
 

AVINO SILVER&GD Price and EPS Surprise | AVINO SILVER&GD Quote

The Zacks Consensus Estimate for third-quarter is at 6 cents, a turnaround from the loss per share of 1 cent in third-quarter 2015. Avino Silver recently reported third-quarter production results wherein silver production increased by 3% while gold production increased by 10%.

An earnings beat is unlikely this quarter for Avino Silver given its Earnings ESP of -16.67% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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