HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Benzinga
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
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Analyst Views on AG
Wall Street analysts forecast AG stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 21.550
Low
19.03
Averages
22.18
High
24.50
Current: 21.550
Low
19.03
Averages
22.18
High
24.50
About AG
First Majestic Silver Corp. is a mining company. The Company is focused on silver and gold production in Mexico and the United States. It owns and operates approximately 350,000 hectares of land package, which include the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, and a 70% joint venture interest in the Cerro Los Gatos Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, United States. The San Dimas Silver/Gold Mine is located over 130 kilometers (km) northwest of the city of Durango, Durango State, Mexico. The Santa Elena Silver/Gold Mine is located over 150 km northeast of the city of Hermosillo, Sonora, Mexico. The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 km northeast of Torreon. The Cerro Los Gatos Mine is located around 120 kms south of Chihuahua City, Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Majestic Silver Stock Plummets 9% Amid Falling Precious Metal Prices
- Significant Stock Drop: First Majestic Silver's stock plummeted 9% by 10:55 a.m. Tuesday, primarily due to the ongoing decline in gold and silver prices, reflecting investor concerns about the company's future profitability.
- Volatile Precious Metal Prices: Gold prices have fallen from a record high of $5,419.80 per ounce on January 28 to the current $4,878, while silver has dropped from $116.58 to $73.40, casting a shadow over First Majestic's earnings outlook.
- Poor Earnings Expectations: Analysts predict that First Majestic will report earnings of $0.23 per share in the upcoming Q4 report, which is seven times the profit for Q4 2024, but with a full-year estimate of only $0.34, indicating weak growth prospects.
- Valuation Concerns: With First Majestic's stock priced around $21 and a P/E ratio exceeding 61, investors selling off shares ahead of earnings may be justified in their concerns regarding the company's high valuation and future profitability.
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- Historical Performance Review: Over the past two years, First Majestic has only beaten EPS estimates 13% of the time, while it has exceeded revenue estimates 50% of the time, suggesting a relatively unstable performance in meeting earnings forecasts.
- Recent Estimate Changes: In the last three months, there has been one upward revision and no downward adjustments to EPS estimates, reflecting increased analyst confidence in the company's future earnings potential, which could positively impact the stock price.
- Market Reaction Analysis: The recent rating upgrades for First Majestic and the $300 million offering of convertible senior notes indicate market recognition of its growth potential, likely attracting more investor interest.
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- First Targeted Therapy: The data signifies remibrutinib's potential as the first targeted therapy for CIndU, with Global Head of Immunology Development Angelika Jahreis highlighting its positive trial results as a foundation for recent FDA approval in chronic spontaneous urticaria.
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HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
See More
Silver Prices Drop to 10-Day Low Amid Strong Dollar
- Silver Price Decline: Spot silver prices fell nearly 4% to $73.90 per ounce, marking their lowest level in over 10 days, indicating weakened market demand for precious metals which could impact the profitability of related mining companies.
- Gold Price Trends: Spot gold prices dropped nearly 2% to $4,910 per ounce, declining for the third consecutive session, reflecting a decrease in investor demand for gold as a safe haven, which may lead to increased price volatility in the future.
- Rising Dollar Index: The U.S. Dollar index gained approximately 0.4% over the past five sessions, with a 0.1% increase, putting pressure on precious metal prices and potentially prompting investors to reassess their portfolios.
- Bearish Market Sentiment: According to sentiment analysis from Stocktwits, iShares Silver Trust (SLV) remains in the 'extremely bearish' zone, reflecting a lack of confidence among investors regarding future silver prices, which could lead to further selling pressure.
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- First Majestic Silver: This company operates mines in Mexico and the U.S., and last year acquired Gatos Silver, gaining a 70% interest in the high-grade Los Gatos mine, with 57% of its revenue from silver, positioning it as a top pure-play silver miner, where rising silver prices will directly enhance its profits.
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See More
First Majestic Silver Stock Plummets 9% Amid Falling Precious Metal Prices
- Significant Stock Drop: First Majestic Silver's stock plummeted 9% by 10:55 a.m. Tuesday, primarily due to the ongoing decline in gold and silver prices, reflecting investor concerns about the company's future profitability.
- Volatile Precious Metal Prices: Gold prices have fallen from a record high of $5,419.80 per ounce on January 28 to the current $4,878, while silver has dropped from $116.58 to $73.40, casting a shadow over First Majestic's earnings outlook.
- Poor Earnings Expectations: Analysts predict that First Majestic will report earnings of $0.23 per share in the upcoming Q4 report, which is seven times the profit for Q4 2024, but with a full-year estimate of only $0.34, indicating weak growth prospects.
- Valuation Concerns: With First Majestic's stock priced around $21 and a P/E ratio exceeding 61, investors selling off shares ahead of earnings may be justified in their concerns regarding the company's high valuation and future profitability.
See More
First Majestic Silver Set to Announce Q4 Earnings with Strong EPS Estimates
- Earnings Announcement: First Majestic Silver is set to release its Q4 earnings on February 19 before market open, with a consensus EPS estimate of $0.23, reflecting a substantial year-over-year increase of 666.7%, indicating a significant improvement in profitability.
- Historical Performance Review: Over the past two years, First Majestic has only beaten EPS estimates 13% of the time, while it has exceeded revenue estimates 50% of the time, suggesting a relatively unstable performance in meeting earnings forecasts.
- Recent Estimate Changes: In the last three months, there has been one upward revision and no downward adjustments to EPS estimates, reflecting increased analyst confidence in the company's future earnings potential, which could positively impact the stock price.
- Market Reaction Analysis: The recent rating upgrades for First Majestic and the $300 million offering of convertible senior notes indicate market recognition of its growth potential, likely attracting more investor interest.
See More
Novartis' Oral Remibrutinib Shows Positive Phase 3 Trial Results
- Trial Success: Novartis' pivotal Phase 3 RemIND trial for oral remibrutinib in chronic inducible urticaria (CIndU) met its primary endpoint, achieving significantly higher complete response rates compared to placebo, indicating the drug's potential in treatment.
- First Targeted Therapy: The data signifies remibrutinib's potential as the first targeted therapy for CIndU, with Global Head of Immunology Development Angelika Jahreis highlighting its positive trial results as a foundation for recent FDA approval in chronic spontaneous urticaria.
- Regulatory Progress: Novartis has submitted a supplemental New Drug Application (sNDA) to the U.S. FDA for remibrutinib's approval in symptomatic dermographism, enhancing its market position in urticaria treatment.
- Strong Stock Performance: Novartis shares rose 0.98% to $167.80 in premarket trading on Wednesday, reaching a new 52-week high, reflecting strong buying pressure, although the RSI of 83.54 suggests potential for a pullback.
See More
HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
See More
Silver Prices Drop to 10-Day Low Amid Strong Dollar
- Silver Price Decline: Spot silver prices fell nearly 4% to $73.90 per ounce, marking their lowest level in over 10 days, indicating weakened market demand for precious metals which could impact the profitability of related mining companies.
- Gold Price Trends: Spot gold prices dropped nearly 2% to $4,910 per ounce, declining for the third consecutive session, reflecting a decrease in investor demand for gold as a safe haven, which may lead to increased price volatility in the future.
- Rising Dollar Index: The U.S. Dollar index gained approximately 0.4% over the past five sessions, with a 0.1% increase, putting pressure on precious metal prices and potentially prompting investors to reassess their portfolios.
- Bearish Market Sentiment: According to sentiment analysis from Stocktwits, iShares Silver Trust (SLV) remains in the 'extremely bearish' zone, reflecting a lack of confidence among investors regarding future silver prices, which could lead to further selling pressure.
See More
Surge in Precious Metals Prices Benefits Silver Mining Stocks
- Surge in Silver Prices: The iShares Silver Trust has surged 160% over the past year, driven by geopolitical tensions and industrial demand, attracting investors to the silver market, with expectations of this trend continuing into 2026.
- First Majestic Silver: This company operates mines in Mexico and the U.S., and last year acquired Gatos Silver, gaining a 70% interest in the high-grade Los Gatos mine, with 57% of its revenue from silver, positioning it as a top pure-play silver miner, where rising silver prices will directly enhance its profits.
- Wheaton Precious Metals: Acting as a financier, Wheaton uses a streaming model to provide upfront capital to mining companies, securing the right to purchase metals at a discount; its average cash cost of silver was $6.35 per ounce in Q3, ensuring cost predictability and protection against inflationary pressures.
- Investment Choices: Investing in First Majestic indicates confidence in its cost management and silver price upside, while Wheaton offers conservative investors a way to gain mining profits through a diversified portfolio without direct operational costs.
See More
