Silvercorp (SVM) – Q4 earnings estimates
Silvercorp (SVM) came out with quarterly profit of $ 0.04 per share, in line with Zacks’ consensus estimate. This compares to a profit of $ 0.02 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, this minerals miner was expected to post a profit of $ 0.08 per share when it actually produced a profit of $ 0.05, delivering a surprise of -37.50 %.
Over the past four quarters, the company has been unable to beat consensus EPS estimates.
Silvercorp, which is part of the Zacks Mining – Miscellaneous business, reported revenue of $ 35.73 million for the quarter ended March 2021, missing Zacks’ consensus estimate of 1.29%. This compares to revenue of $ 18.86 million a year ago. The company has beaten consensus revenue estimates just once in the past four quarters.
The sustainability of the immediate move in stock prices based on recently released numbers and future earnings forecasts will depend primarily on management comments on the profit call.
Silvercorp shares have lost about 9.6% year-to-date against the S&P 500’s 9.6% gain.
What’s next for Silvercorp?
Although Silvercorp has underperformed 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 the company’s earnings outlook is a reliable metric that can help investors address it. This not only includes the current consensus earnings forecast for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has impressive experience in harnessing the power of earnings estimate revisions.
Prior to the publication of these results, the trend of revised estimates for Silvercorp was unfavorable. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status translates into a Zacks # 4 (sell) rank for the company. action. Thus, stocks are expected to underperform the market in the near future. You can see The full list of current Zacks # 1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the coming quarters and the current year evolve in the days to come. The current consensus EPS estimate is $ 0.07 on $ 57 million of revenue for the coming quarter and $ 0.33 on $ 231.2 million of revenue for the current year.
Investors should be aware that the outlook for the industry can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, Mining – Miscellaneous is currently in the bottom 27% of the 250+ Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
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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.