Pan American Silver Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

Pan American Silver (NAS: PAAS) reported earnings on Aug. 14. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Pan American Silver whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
 Pan American Silver chalked up revenue of $200.6 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $245.2 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $231.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.23. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.23 for Q2 were 78% lower than the prior-year quarter's $1.04 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 43.2%, 800 basis points worse than the prior-year quarter. Operating margin was 19.5%, 2,630 basis points worse than the prior-year quarter. Net margin was 21.9%, 2,670 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $260.1 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $1.71.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,103 members out of 1,167 rating the stock outperform, and 64 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 220 give Pan American Silver a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pan American Silver is hold, with an average price target of $25.82.

Is Pan American Silver the right metals stock for you? Find out the best way to profit from inflation and gold with a little-known company we profile in, "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.

The article Pan American Silver Whiffs on Revenues originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement