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What's in Store for Pan American Silver (PAAS) in Q1 Earnings?

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Pan American Silver Corp. (PAAS - Free Report) is slated to report first-quarter 2023 results on May 10, after the closing bell.

Q1 Estimates

The Zacks Consensus Estimate for Pan American Silver’s first-quarter earnings is pegged at 2 cents per share. The estimate indicates a slump of 87% from earnings per share of 15 cents in the year-ago quarter. The consensus estimate for earnings for the to-be-reported quarter has plunged 78% over the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $356 million, suggesting a 19% decline from the prior-year quarter's actual.

Q4 Results

The company had reported an adjusted loss of 2 cents per share in the fourth quarter of 2022 against earnings of 19 cents in the prior-year quarter. PAAS had witnessed an 11% year-over-year decline in revenues to $375 million in the quarter. The company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, while surpassing in one, leading to an average negative surprise of 67.5%.

Pan American Silver Corp. Price and EPS Surprise

 

Pan American Silver Corp. Price and EPS Surprise

Pan American Silver Corp. price-eps-surprise | Pan American Silver Corp. Quote

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Pan American Silver this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for PAAS is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Price Performance

Shares of Pan American Silver have gained 32.8% in the past year compared with the industry’s 15.8% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Factors to Consider

Pan American Silver had reported a loss in the fourth quarter of 2022 mainly due to low silver prices and high costs. Worldwide inflationary pressures, ongoing supply-chain shortages and delays have led to the escalation of production costs across the company’s operations. This scenario continued through the first quarter of 2023 as well, which is anticipated to get reflected in the company’s quarterly margins.

Also, silver prices had been impacted in the first quarter of 2023 amid rising interest rates, a stronger dollar, inflation and sluggish growth. The contraction in the industrial sector due to muted customer spending and supply-chain constraints weighed on silver prices. Lower prices are expected to get reflected in PAAS’s results in the to-be-reported quarter.  

On Mar 31, the company announced that it closed the much-awaited acquisition of Yamana Gold Inc. This adds four producing mines to Pan American's portfolio — the Jacobina mining complex in Brazil, the El Peñón and Minera Florida mines in Chile, and the Cerro Moro mine in Argentina. It also includes the MARA development project in Argentina. The company has revised its production and cost guidance for 2023.

Stocks That Warrant a Look

Here are companies, which, according to our model, have the right combination of elements to post an earnings beat:

Fox Corporation (FOXA - Free Report) currently has an Earnings ESP of +2.11% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s third-quarter fiscal 2023 results are likely to reflect an increase in the bottom line. The Zacks Consensus Estimate for quarterly earnings per share of 88 cents suggests an increase of 8.6% from the year-ago quarter's actual.

Fox Corp’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.05 billion, which suggests a rise of 17.1% from the figure reported in the prior-year quarter.

Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +5.57% and a Zacks Rank of 3. The company's first-quarter fiscal 2023 results are likely to reflect an increase in the bottom line. The Zacks Consensus Estimate for quarterly earnings per share of 94 cents suggests a rise of 74.1% from the year-ago quarter's actual.

Burlington Stores’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 13.6% from the figure reported in the prior-year quarter. Burlington Stores has a trailing four-quarter earnings surprise of 7%, on average.

Walmart (WMT - Free Report) currently has an Earnings ESP of +0.28% and a Zacks Rank of 3. The company’s bottom line is expected to be flat year over year when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.30.

Walmart’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $148.5 billion, which suggests an increase of 4.9% from the figure reported in the prior-year quarter. WMT delivered an earnings beat of 6.5%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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