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Endeavour Silver (EXK) Reports Break-Even Earnings for Q4

Scorpio

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Endeavour Silver (EXK) Reports Break-Even Earnings for Q4​



Zacks Equity Research
Thu, March 10, 2022, 7:05 AM


Endeavour Silver (EXK) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.02. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this silver mining company would post earnings of $0.02 per share when it actually produced a loss of $0.03, delivering a surprise of -250%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Endeavour Silver , which belongs to the Zacks Mining - Silver industry, posted revenues of $48.5 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 10.71%. This compares to year-ago revenues of $60.7 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Endeavour Silver shares have added about 21.1% since the beginning of the year versus the S&P 500's decline of -10.3%.

What's Next for Endeavour Silver?

While Endeavour Silver has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Endeavour Silver: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $47.03 million in revenues for the coming quarter and $0.22 on $203.76 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Silver is currently in the bottom 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Basic Materials sector, Sierra Metals Inc. (SMTS), is yet to report results for the quarter ended December 2021. The results are expected to be released on March 16.
This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -40%. The consensus EPS estimate for the quarter has been revised 18.2% lower over the last 30 days to the current level.
Sierra Metals Inc.'s revenues are expected to be $68.67 million, down 9.9% from the year-ago quarter.

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AUnut

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What's next for EXK?
I don't know, but I will watch them closely for diluting my position. I hate companies that do this exact thing.
If it wasn't my 2nd best performing stock in the last 2 months, it would be gone.
 

Voodoo

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What's next for EXK?
I don't know, but I will watch them closely for diluting my position. I hate companies that do this exact thing.
If it wasn't my 2nd best performing stock in the last 2 months, it would be gone.

Show me a public company that doesn't dilute? Very, very rare. Some are serially bad about it and should be shunned, but if you get good value for the purchase than there is no problem.
 

solarion

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Endeavor, like First Majestic gets cut a whole lot of slack by the PM investment community...despite some rather questionable management decisions. The acquisition and capex on the Pitarrilla project they recently got from SSR mining may turn out to be another one of those.

To me it's rather like Coeur mining, and to a slightly lesser degree Hecla. Pick it up when it gets whacked real hard, wait for it to rebound, and cut it loose. The primary silver mining landscape is no doubt very difficult at these prices, but they need to get their shit together before I'll consider them long term holds. There are better managed companies out there.

I'm in currently after that beating they took on the dilution announcement the other day...down 14% or some such, but again, it's almost surely going to be a quick flip and done.