First Majestic Silver Corp. (AG Quick QuoteAG - Free Report) is scheduled to release first-quarter 2026 results on May 12. The Zacks Consensus Estimate for its quarterly earnings is currently pegged at 33 cents per share.

The company’s first-quarter earnings estimates have increased 13.8% over the past 60 days. The bottom-line projection indicates a surge of 560% from the year-ago number.

Earnings Surprise History

The company has a dismal earnings surprise history, missing the Zacks Consensus Estimate thrice and outpacing once in the preceding four quarters. The earnings surprise is a negative 18.8%, on average. In the last reported quarter, it reported earnings of 30 cents per share, beating the consensus estimate of 27 cents.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for the company this time around. 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, but that’s not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: First Majestic has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 33 cents per share.

Zacks Rank: AG presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Majestic Silver Corp. Price and EPS Surprise

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

Factors Likely to Have Shaped AG’s Quarterly Performance

AG’s total production reached 3.5 million ounces of silver and 34,341 gold ounces in the first quarter of 2026. It also produced 15.4 million pounds of zinc, 8.7 million pounds of lead and 262,913 pounds of copper. The silver and gold ounces produced marked a decline of 5.4% and 6%, respectively, on a year-over-year basis. The fall in production level is expected to impact the top-line results in the first quarter. 

Despite the recent decline, the company has been benefiting from a significant increase in silver prices over the past year. The prices have remained strong, owing to the persistent market deficit, high industrial demand in solar and AI sectors and strong safe-haven demand. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand.

Also, with the acquisition of Gatos Silver in January 2025, First Majestic gained a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine. This transaction solidified AG’s position as an intermediate primary silver producer, which is likely to have boosted its performance in the quarter.

First Majestic currently owns four operating mines in Mexico, including the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine and La Encantada Silver mine. These sites are witnessing healthy production performances despite the ongoing legal and regulatory issues, which hold positive. However, lower silver and gold production at the San Dimas Silver/Gold mine is likely to hurt its results.

Also, the company has been incurring high costs and expenses related to an increase in royalties and higher worker participation costs. The increase in operating expenses is likely to have dented its margins and profitability in the to-be-reported quarter.

AG’s Price Performance

AG shares have soared 79.8% in the past six months compared with the Zacks Mining - Silver industry and the S&P 500’s growth of 44.7% and 9.3%, respectively. Shares of the company’s peers, Hecla Mining Company (HL Quick QuoteHL - Free Report) and Coeur Mining, Inc. (CDE Quick QuoteCDE - Free Report) , have gained 20.3% and 21.8%, respectively, over the same time frame.

Three-Month Price Performance

Image Source: Zacks Investment Research

First Majestic’s Valuation

First Majestic is trading at a forward 12-month price-to-earnings (P/E) ratio of 25.36X, much higher than the industry average of 14.30X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

In comparison with AG’s valuation, its peer, Hecla Mining, is currently overvalued, while Coeur Mining is trading cheaper. Notably, Hecla Mining and Coeur Mining are currently trading at 31.65X and 11.65X, respectively.

Price-to-Earnings (Forward 12 Months)

Image Source: Zacks Investment Research

Investment Thesis

First Majestic’s market leadership position, diversified assets and strong liquidity position provide it with a competitive advantage to leverage the long-term demand prospects in silver and gold markets. Rise in metal prices and solid demand across solar energy and electronics markets is expected to drive First Majestic's performance in the quarters ahead. However, escalating operating costs remain concerning for its margin performance.

Should You Buy AG Pre-Q1 Earnings Release?

First Majestic's solid foothold and persistent strength in gold and silver markets bode well for its growth. Given the strength in most of its served markets, the company has built a sound liquidity position that supports its shareholder-friendly policies.

However, ongoing legal and regulatory issues at the operating mines in Mexico present a financial and operational risk, which remains concerning for its near-term performance. Also, an expensive valuation warrants a cautious approach for existing investors.

Potential investors should monitor the developments of the stock closely for a more appropriate entry point. Therefore, it might be prudent to wait for AG’s earnings report before making an investment decision.