Pan American Silver Goes Red

Seth Jayson, The Motley Fool
Updated

Pan American Silver (NAS: PAAS) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Pan American Silver whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
 Pan American Silver tallied revenue of $247.3 million. The three analysts polled by S&P Capital IQ hoped for sales of $277.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $212.4 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 $0.36. The eight earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. Non-GAAP EPS of $0.36 for Q4 were 41% lower than the prior-year quarter's $0.61 per share. GAAP EPS were -$0.24 for Q4 compared to $0.89 per share for the prior-year quarter.

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 47.4%, 3,310 basis points worse than the prior-year quarter. Operating margin was 28.4%, 1,100 basis points worse than the prior-year quarter. Net margin was -11.7%, 5,660 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $288.0 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $1.58.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,095 members out of 1,159 rating the stock outperform, and 64 members rating it underperform. Among 216 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give Pan American Silver a green thumbs-up, and 22 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 $24.96.

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The article Pan American Silver Goes Red 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 position in any of the stocks mentioned. 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.

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