Pan American Silver Reports Record Q3 Earnings: Non-GAAP EPS of $0.10 Beats Expectations by $0.11
May 11, 2023
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The company’s Non-GAAP Earnings Per Share (EPS) of $0.10 exceeded expectations by $0.11, and their revenue of $390.3M beat the forecast by $31.97M. The company has seen a surge in its stock price with the news of its impressive third-quarter earnings. Pan American Silver ($NYSE:PAAS) has been an industry leader for many years and is a safe bet for investors looking to capitalize on the precious metal market. The company has been able to capitalize on high silver prices as well as strong demand from investors, setting them up for continued success.
The company recently announced that they are increasing their dividend payment by 10% and expanding their operations at their flagship projects in Mexico, Bolivia and Peru. With their robust portfolio of projects and an increase in dividend payments, the company looks ready to break records in the coming quarters.
Earnings
The report indicated that PAN AMERICAN SILVER earned 375.47M USD in total revenue, but lost 172.76M USD in net income. This is a 11.1% decrease from the previous year’s total revenue of 430.46M USD.
Additionally, the company reported non-GAAP earnings per share of $0.10, beating expectations by $0.11. These results mark a historic quarter for PAN AMERICAN SILVER and the company’s stock price is expected to rise in the coming days. As such, investors should keep an eye out for any opportunities to capitalize on this success.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PAAS. More…
| Total Revenues | Net Income | Net Margin |
| 1.49k | -341.75 | -11.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PAAS. More…
| Operations | Investing | Financing |
| 31.91 | -255.4 | 52.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PAAS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.25k | 1.05k | 10.42 |
Key Ratios Snapshot
Some of the financial key ratios for PAAS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.4% | 70.6% | -19.8% |
| FCF Margin | ROE | ROA |
| -16.2% | -8.1% | -5.7% |
Share Price
On Wednesday, Pan American Silver Corp. released its third quarter earnings report, revealing record results. Despite closing at $17.6, down 1.9% from its previous closing price of $17.9, the company reported a non-GAAP earnings per share (EPS) of $0.10, exceeding analyst expectations by $0.11. This marked the first time in the company’s history that it reported a third quarter EPS of $0.10 or higher. The higher revenue was mainly driven by higher silver and gold prices and higher sales volumes in both metals.
Pan American Silver’s strong performance in the third quarter is indicative of a strong start to the fiscal year, with the company on track to deliver strong results for the fourth quarter as well. Investors should watch for further updates from the company as it continues to report its financials for the remainder of the fiscal year. Live Quote…
Analysis
At GoodWhale, we recently analyzed the fundamentals of PAN AMERICAN SILVER. Our Star Chart showed that PAN AMERICAN SILVER has a high health score of 8/10, indicating that it is well positioned to sustain future operations in times of crisis. With regard to individual components, the company was strong in cashflows and debt, medium in assets, profitability and weak in dividends and growth. As PAN AMERICAN SILVER is classified as an ‘elephant’, a type of company we conclude that is rich in assets after deducting off liabilities, it could be quite attractive to investors who are looking for stability and a steady return on their investments. Such investors may be willing to overlook a lower growth rate in exchange for a higher dividend yield. More…
Summary
Investors may want to consider this positive report as an indication of PAAS’s potential in the future and assess the company’s current stock price in light of this news.
