Sequans Communications reports second quarter revenue flat at $8.1 million
On Wednesday, H.C. Wainwright maintained a Buy rating on Endeavour Silver Corp (NYSE:EXK) and increased the price target to $7.25 from the previous $7.00. According to InvestingPro data, the stock appears overvalued at current levels, despite showing significant momentum with a 12.44% return over the past week. The adjustment comes after the company reported an annual revenue of $217.6 million, resulting in a net loss of $31.5 million, or $0.13 per share. This performance contrasts with the 2023 figures, where Endeavour Silver (TSX:EDR) achieved a revenue of $205.5 million and a net income of $6.1 million, or $0.03 per share.
The analyst highlighted that the 6% year-over-year increase in revenue for Endeavour Silver was primarily due to a rise in the average realized gold and silver spot prices, which went up by 22% and 15% respectively. The company’s performance has been remarkable in the market, with InvestingPro data showing a stunning 111.21% return over the past year. Despite the positive price developments, the company faced a 21% drop in silver production and an 18% fall in the number of silver ounces sold, contributing to a gross profit margin of 31.61%.
Endeavour Silver’s net loss was significantly impacted by a foreign exchange loss of $5.5 million, compounded by a loss of $30.6 million due to derivative liabilities. Nonetheless, the firm’s financial health appears robust, with $106.4 million in cash and cash equivalents and a working capital balance of $78.8 million. InvestingPro analysis reveals the company operates with a moderate level of debt, maintaining a healthy debt-to-equity ratio of 0.21. For deeper insights into Endeavour Silver’s financial health and 11 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
The analyst believes that Endeavour Silver is well-capitalized to support its operations and continue developing its asset base. The revised price target of $7.25 is based on updated discounted cash flow (DCF) models that account for the commencement of Endeavour’s next fiscal year, with analyst targets ranging from $5.00 to $7.00 per share.
In other recent news, Endeavour Silver Corp. reported its fourth-quarter earnings, surpassing analyst expectations. The company posted adjusted earnings of $0.02 per share, while analysts had anticipated a loss of $0.01 per share. Although Endeavour’s revenue for the quarter was $42.2 million, it fell short of the consensus estimate of $48.62 million. For the full year 2024, the company reported a 6% increase in revenue, totaling $217.6 million. Endeavour produced 4.47 million ounces of silver and 39,047 ounces of gold for the year, reaching the higher end of its revised guidance. The company noted that a trunnion failure at its Guanacevi mine impacted production in the fourth quarter. Endeavour’s Terronera project is progressing well, with 89.4% completion and wet commissioning expected in early Q2 2025. The company ended the year with a cash position of $106.4 million and working capital of $78.8 million.
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