First Majestic Silver Corp. (TSE:AG) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

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It's been a mediocre week for First Majestic Silver Corp. (TSE:AG) shareholders, with the stock dropping 10% to CA$9.02 in the week since its latest quarterly results. The results were positive, with revenue coming in at US$151m, beating analyst expectations by 4.3%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for First Majestic Silver

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TSX:AG Earnings and Revenue Growth November 10th 2024

Taking into account the latest results, the most recent consensus for First Majestic Silver from three analysts is for revenues of US$728.2m in 2025. If met, it would imply a sizeable 39% increase on its revenue over the past 12 months. First Majestic Silver is also expected to turn profitable, with statutory earnings of US$0.14 per share. Before this earnings report, the analysts had been forecasting revenues of US$611.1m and earnings per share (EPS) of US$0.089 in 2025. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of CA$10.33, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic First Majestic Silver analyst has a price target of CA$12.50 per share, while the most pessimistic values it at CA$9.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that First Majestic Silver's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect First Majestic Silver to grow faster than the wider industry.

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