Why First Majestic Silver Stock Was Wilting on Wednesday

Some precious metal prices either approached or established new all-time highs recently. You'd hardly know that from Wednesday's performance of First Majestic Silver (NYSE: AG) stock, however. The silver miner's equity was sliding by over 7% in price that afternoon on the back of quarterly results, at a point when the bellwether S&P 500 index was rising by 0.8%.

Silver surge

First Majestic's third-quarter figures, published before market open on Wednesday, revealed that the company notched new records in the period for both silver production and total revenue. The former nearly doubled year over year to 3.9 million ounces. Ditto for the latter, which zoomed to slightly more than $285 million, from the year-ago tally of $146 million and change.

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On the bottom line, First Majestic flipped to a net profit, at least not according to generally accepted accounting principles (GAAP). The company's non-GAAP (adjusted) net income figure was $32.4 million ($0.07), against the third-quarter 2024 loss of $10.5 million.

Given how strong demand has been for precious metals like gold and, yes, silver, expectations were very high for the company. Analysts following it had been modeling notably higher revenue and adjusted profitability figures for the quarter. Specifically, their consensus for revenue was nearly $312 million, and that for adjusted profitability was $0.11 per share.

Dividend raise in the offing

First Majestic's standing policy is to pay a quarterly dividend totaling roughly 1% of its net revenue. With that, the company declared that its next payout will be just under $0.01 per share, for a 7% increase over its predecessor. This is the second quarter in a row it has enacted a dividend raise.

The new dividend, which would yield under 0.2% at the current share price, is to be dispensed on or about Nov. 28 to investors of record as of Nov. 14.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.