Silver Standard Resources Inc. (SSRM - Free Report) is slated to report first-quarter 2020 results on May 14, after the closing bell.
The Zacks Consensus Estimate for Silver Standard’s first-quarter earnings is currently pegged at 23 cents, suggesting year-over-year growth of 64.3%. The Zacks Consensus Estimate for revenues is $173.8 million, indicating an improvement of 37.6% from the prior-year quarter.
A Sneak Peek at Q4
In fourth-quarter 2019, Silver Standard’s adjusted earnings per share of 30 cents missed the Zacks Consensus Estimate of 7 cents. However, the bottom line improved substantially from 4 cents per share in fourth-quarter 2018.
In the trailing four quarters, the company has surpassed the consensus mark on three occasions while missing once. It has a trailing four-quarter positive earnings surprise of 77.8%, on average.
Silver Standard Resources Inc Price and EPS Surprise
Our proven model predicts an earnings beat for Silver Standard this time around. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Silver Standard has an Earnings ESP of +13.57% and a Zacks Rank #2.
Per Silver Standard’s first-quarter 2020 operational update, the company produced over 107,000 consolidated gold equivalent ounces from its three operations.
In the quarter, the Marigold mine produced 58,448 ounces of gold, a 1% decrease from the last reported quarter primarily owing to reduced ore tons delivered to the leach pad and lower gold grades. Gold sales totaled 58,000 ounces, 5% lower than the previous year quarter. Notably, the pandemic hasn’t been able to impact Marigold severely and it continues normal operations at this time.
The Seabee Gold Operation produced a record 29,521 ounces of gold in the quarter to be reported, a 34% year-over-year increase, primarily driven by higher gold mill feed grade. Gold sales totaled 27,714 ounces for the first quarter, up 13.8% from the prior-year quarter. The company announced the temporary suspension of the operations late in the first quarter in response to the COVID-19 pandemic.
The Puna Operations produced 1.8 million ounces of silver in first-quarter 2020, 17% lower than the prior quarter. This can mainly be attributed to lower mill throughput and silver mill feed grade. Silver sales totaled 1.8 million ounces, down 29% year over year. Total material mined during the first quarter has been impacted by weather events and the temporary suspension of operations from Mar 20, 2020 in accordance with government-mandated restrictions due to the COVID-19 outbreak.
Factors to Note
In the quarter to be reported, the company’s revenues are likely to reflect benefits from higher gold prices. Among metals, gold has been the bright spot as mounting fears over the coronavirus pandemic has made it the most attractive safe-haven asset. Further, slump in crude oil prices, a low interest rate environment and geopolitical tensions are likely to have boosted demand for gold. All these factors contributed to a 6% rise in gold prices in the January-March period. The combination of higher gold prices and higher units of gold sold is likely to get reflected in the company’s to-be-reported quarter results.
However, silver prices have declined 23% in the first quarter on apprehensions regarding the impact of the coronavirus pandemic on global economy and industrial activity. Lower silver prices and reduced silver sold from the Puna operations may have weighed on the first-quarter performance.
Silver Standard’s shares have gained 52.8% in the past year, against the industry’s decline of 6.9%.
Other Stocks That Warrant a Look
Here are some other stocks which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Health Catalyst Inc. (HCAT - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Commercial Metals Company (CMC - Free Report) has a Zacks Rank #3 and an Earnings ESP of +72.41%.
CBL Associates Properties Inc. (CBL - Free Report) , a Zacks Ranked #3 stock, has an Earnings ESP of +11.11%.
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