First Majestic Silver (NYSE:AG) Releases Quarterly Earnings Results

First Majestic Silver (NYSE:AG) (TSE:FR) announced its quarterly earnings results on Thursday. The mining company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.04), Zacks reports. The business had revenue of $415.50 million during the quarter, compared to analysts’ expectations of $496.00 million. First Majestic Silver had a net margin of 21.18% and a return on equity of 13.58%. The firm’s revenue for the quarter was up 57.3% on a year-over-year basis. During the same period last year, the company earned $0.11 EPS.

Here are the key takeaways from First Majestic Silver’s conference call:

• Positive Sentiment: First Majestic reported strong Q2 results, with revenue up 53% year over year to $416 million, EBITDA up 110% to $252 million, and 3.8 million ounces of silver production. First-half production reached 7.3 million ounces, representing about half of the company’s recently increased full-year guidance.
• Positive Sentiment: The company ended June with approximately $1.25 billion in treasury assets, generated $195 million in quarterly free cash flow, increased its dividend by 270% year over year, and repurchased 1.2 million shares for $22 million.
• Positive Sentiment: Growth projects are advancing at Santa Elena and Jerritt Canyon. Santo Niño development has begun, with first ore targeted for late 2027, Navidad expected roughly 18 months later, and Jerritt Canyon production targeted for Q3 2027 with approximately 80% of planned new positions filled.
• Positive Sentiment: Operating performance remained favorable, including record throughput of 4,070 tonnes per day at Los Gatos and improving throughput at Santa Elena and La Encantada. Metallurgical testing for Santo Niño and Navidad indicated recoveries above 95% for both gold and silver, with higher expected silver grades.
• Negative Sentiment: Capital spending is expected to be heavily back-end loaded in 2026, with Los Gatos slightly behind its development budget. Management also cited potential large future cash requirements for the Mexico tax settlement and the Jerritt Canyon restart, while finished silver inventory rose above 1 million ounces after the company deferred sales during a sharp price decline.

First Majestic Silver Trading Down 4.3%

AG stock traded down $0.67 during midday trading on Friday, hitting $15.02. The stock had a trading volume of 12,860,719 shares, compared to its average volume of 10,092,442. The company’s 50-day moving average price is $17.45 and its 200 day moving average price is $20.77. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.73 and a quick ratio of 2.54. The firm has a market cap of $7.41 billion, a PE ratio of 21.16 and a beta of 0.91. First Majestic Silver has a 12-month low of $7.74 and a 12-month high of $32.03.

First Majestic Silver Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, August 14th will be paid a $0.0152 dividend. This represents a $0.06 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Friday, August 14th. First Majestic Silver’s payout ratio is presently 8.45%.

Key First Majestic Silver News

Here are the key news stories impacting First Majestic Silver this week:

• Positive Sentiment: HC Wainwright raised its price target to $27 from $26 and reiterated a “buy” rating, implying substantial upside from recent levels. HC Wainwright price target increase
• Positive Sentiment: Analyst sentiment remains favorable, with the average price target reported at $23.50 and Seeking Alpha upgrading the stock to Buy, citing a discount to estimated intrinsic value and potential for a silver-price re-rating. Analyst average price target
• Positive Sentiment: Second-quarter free cash flow reached $194.6 million, while EBITDA rose 110% to $252 million. The company also reported a $1.09 billion cash position in one analysis, or approximately $1.3 billion including its broader treasury, strengthening its ability to fund reinvestment, acquisitions and other growth initiatives. First Majestic second-quarter free cash flow
• Neutral Sentiment: First Majestic declared a quarterly dividend of $0.0152 per share, payable August 31 to shareholders of record August 14. The payout provides income support, although its annualized yield is modest at about 0.4%.
• Negative Sentiment: Reported second-quarter EPS of $0.21 missed the $0.25 consensus estimate, while revenue of $415.5 million came in below the $496 million forecast. Although revenue increased 57.3% year over year, the shortfall may be driving near-term selling pressure. First Majestic earnings report
• Negative Sentiment: The earnings call highlighted labor disruptions, higher costs and inventory accumulation caused by silver-price volatility, creating execution and margin risks despite record revenue and strong profitability.

Institutional Investors Weigh In On First Majestic Silver

Hedge funds have recently made changes to their positions in the business. Tidal Investments LLC increased its stake in First Majestic Silver by 14.0% in the third quarter. Tidal Investments LLC now owns 21,014,859 shares of the mining company’s stock valued at $258,273,000 after purchasing an additional 2,581,023 shares during the last quarter. BNP Paribas Financial Markets grew its holdings in First Majestic Silver by 964.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,334,147 shares of the mining company’s stock valued at $19,303,000 after buying an additional 2,114,874 shares during the period. Morgan Stanley grew its holdings in First Majestic Silver by 63.2% in the 4th quarter. Morgan Stanley now owns 3,809,109 shares of the mining company’s stock valued at $63,460,000 after buying an additional 1,474,412 shares during the period. Mackenzie Financial Corp increased its stake in shares of First Majestic Silver by 67.3% during the 4th quarter. Mackenzie Financial Corp now owns 2,869,121 shares of the mining company’s stock valued at $48,502,000 after acquiring an additional 1,154,430 shares during the last quarter. Finally, Barclays PLC increased its stake in shares of First Majestic Silver by 343.3% during the 3rd quarter. Barclays PLC now owns 1,383,403 shares of the mining company’s stock valued at $17,002,000 after acquiring an additional 1,071,354 shares during the last quarter. Institutional investors and hedge funds own 27.16% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on AG shares. HC Wainwright lifted their price objective on First Majestic Silver from $26.00 to $27.00 and gave the stock a “buy” rating in a research report on Friday. ATB Cormark Capital Markets raised First Majestic Silver from a “hold” rating to a “moderate buy” rating in a research report on Friday, July 10th. Scotiabank cut their price target on First Majestic Silver from $23.00 to $22.50 and set a “sector perform” rating for the company in a report on Tuesday, July 14th. Weiss Ratings downgraded First Majestic Silver from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, June 5th. Finally, Wall Street Zen lowered First Majestic Silver from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, First Majestic Silver has a consensus rating of “Moderate Buy” and a consensus price target of $23.83.

First Majestic Silver Company Profile

First Majestic Silver Corp. (NYSE:AG) engages in the production of silver from its wholly owned operations in Mexico. Headquartered in Vancouver, British Columbia, the company focuses on acquiring, developing and operating high-grade silver projects. Established in 2002, First Majestic has built a multi-mine portfolio to supply silver primarily for the global industrial and investment markets while generating by-products such as gold, lead and zinc concentrates.

First Majestic’s principal operations are located in the historic Mexican Silver Belt, with producing mines including La Encantada in Coahuila, Santa Elena in Sonora and La Parrilla in Durango.