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Silver Standard (SSRM) Q1 Earnings Top Estimates, Shares Up

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Silver Standard Resources Inc.’s SSRM shares have gained 6% since the company reported better-than-expected first-quarter 2021 earnings on May 6. Adjusted earnings per share for the reported quarter came in at 47 cents, beating the Zacks Consensus Estimate of 40 cents. The bottom-line figure surged 147.3% from the 19 cents reported in the prior-year quarter. Increase in gold equivalents sold, higher average realized prices for gold and silver, and lower costs drove earnings during the quarter.

Including one-time items, earnings came in at 24 cents per share compared with the prior-year quarter’s 19 cents.

Silver Standard Resources Inc. Price, Consensus and EPS Surprise

Silver Standard Resources Inc. Price, Consensus and EPS Surprise
Silver Standard Resources Inc. Price, Consensus and EPS Surprise

Silver Standard Resources Inc. price-consensus-eps-surprise-chart | Silver Standard Resources Inc. Quote

Operational Update

Silver Standard’s total revenues surged 123.2% year over year to $366 million during the first quarter. The top-line figure surpassed the Zacks Consensus Estimate of $346 million.

Production shot up 83% year on year to 196,094 gold equivalent ounces in the reported quarter. Gold equivalents sold soared 92.4% to 201,494 ounces in the quarter on a year-over-year basis.

Average realized gold price was up 12.6% to $1,798 per ounce from the year-ago period. Average realized silver price was $26.02 per ounce in the quarter, reflecting a year-over-year jump of 49%.

Cash cost per gold equivalent ounce declined 19.2% year over year to $665 during the first quarter. All-in sustaining costs (“AISC”) per gold equivalent ounce sold decreased 20.3% to $1,004 in the reported quarter from the prior-year quarter’s $1,261.

Income from mine operations skyrocketed 230% year over year to $148 million during the March-end quarter. Gross margin was 40% in the reported quarter compared with the year-earlier quarter’s 27%. Operating income was $128 million, up a whopping 265.7% from the year-ago quarter’s $35 million.

Financial Results

As of Mar 31, 2021, cash and cash equivalents were $866 million, up from $861 million as of Dec 31, 2020. The company generated $145 million of cash flow from operations in the first quarter compared with the year-ago quarter’s $64 million.

Price Performance

Shares of Silver Standard have gained 2.7% over the past three months, compared with the industry’s growth of 28.9%.


Zacks Rank & Stocks to Consider

Silver Standard currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include ArcelorMittal MT, Celanese Corp. CE and Dow Inc. DOW. All of these stocks flaunt a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

ArcelorMittal has a projected earnings growth rate of 984.7% for the current fiscal year. The company’s shares have soared nearly 179% in the past year.

Celanese has an expected earnings growth rate of 68.3% for the current fiscal year. The company’s shares have rallied around 90% over the past year.

Dow has an estimated earnings growth rate of 261.6% for the current fiscal year. The company’s shares have gained roughly 75% in a year’s time.

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Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report

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