Fortuna Silver (FSM) Missed Q4 Results, Year-over-Year Revenue Increase

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Fortuna Silver Mines Inc. FSM reported fourth-quarter 2021 adjusted earnings per share of 10 cents, which missed Zacks’ consensus estimate of 12 cents. Net income decreased by 9% compared to the prior year quarter.

Including one-time items, Fortuna Silver reported earnings of 5 cents per share in the quarter under review, compared with 10 cents in the year-ago quarter.

Fortuna Silver’s revenue jumped 92% year-over-year to a record $199 million in the fourth quarter. This was helped by the contribution of gold sales from the Yaramoko mine of $52.2 million and the Lindero mine of $65.6 million.

Fortuna Silver Mines Inc. Price, Consensus and Surprise EPS

Fortuna Silver Mines Inc. price-consensus-eps-surprise-chart | Fortuna Silver Mines Inc. Quote

Cost of sales increased 148% to $141 million in the quarter under review. Fortuna Silver reported mining operating profit of $58.3 million in the quarter under review, reflecting a 24% year-over-year improvement. Operating profit was $38.9 million, up from $28.2 million in the year-ago quarter.

Adjusted EBITDA improved 100% year-over-year to $89.6 million in the fourth quarter of 2021. Adjusted EBITDA margin was 45%, indicating a contraction of 170 basis points from the prior year quarter.

Financial situation

Fortuna Silver ended 2021 with approximately $107 million in cash and cash equivalents, down from $132 million held at the end of 2020. Cash flow from operating activities was $147 million in 2021, compared to $93 million the previous year.

Manufacturing details

In 2021, silver and gold productions were 7,498,701 ounces and 207,192 ounces respectively. The figures are higher than production of 7,133,717 ounces of silver and 55,349 ounces of gold in 2020.

Price performance

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The company’s shares have fallen 40.6% in one year, compared to 10.7% for the sector.

How did FSM’s peers perform in the fourth quarter?

Endeavor Silver Corporation EXK reported break-even earnings per share in the fourth quarter of 2021 and missed Zacks consensus earnings estimate by 2 cents. The company had posted earnings of 13 cents per share in the prior year quarter.

Endeavor Silver’s revenue decreased 20% year-over-year to $49 million in the quarter under review. The company carries a Zacks Rank #3 (Hold). EXK shares have fallen 2% over the past year.

Avino Silver & Gold Mines Ltd. ASM reported fourth-quarter 2021 adjusted earnings per share of 5 cents, beating Zacks consensus estimate of 3 cents per share. The company had reported break-even earnings per share in the prior year quarter.

Avino Silver’s revenue soared 562% year-over-year to $9.3 million in the quarter under review, the highest revenue on record since the fourth quarter of 2019. However , revenue missed Zacks’ consensus estimate of $10 million. Shares of the company, with a Zacks No. 3 ranking, have fallen 23.6% in one year.

Zacks Ranking and Stocks to Consider

Fortuna Silver is currently wearing a Zacks rank #4 (sale).

A higher-ranked stock in the basic materials space is Nutrien Ltd. NTR, which has a Zacks rank of #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

Nutrien forecasts a profit growth rate of 106% for the current year. Zacks’ consensus estimate for its current-year earnings has been revised up 38% in the past 60 days.

Nutrien has beaten Zacks’ consensus estimate for earnings in three of the past four quarters, but missed once. It has an earnings surprise for the last four quarters of around 60%, on average. NTR shares have gained about 43% since the start of the year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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