Silver Standard Resources (NASDAQ:SSRM) Announces Quarterly Earnings Results

Key Points

• Quarterly earnings slightly missed expectations: Silver Standard Resources reported $0.66 in earnings per share, versus the $0.67 consensus estimate. The company posted a 12.17% net margin and 14.87% return on equity.
• Balance sheet and shareholder returns strengthened: Following the Çöpler sale and exit from Türkiye, SSR Mining held nearly $1.8 billion in cash with no debt. It returned $338 million through second-quarter share repurchases, reinstated its dividend and continued its $500 million buyback program.
• Production guidance was maintained, but costs are rising: First-half production was on plan and full-year guidance was reiterated, while all-in sustaining costs are expected near the high end of guidance. Sustaining capital spending is projected at approximately $230 million–$235 million, above the original $202 million plan.

Silver Standard Resources (NASDAQ:SSRM - Get Free Report) TSE: SSO announced its earnings results on Tuesday. The basic materials company reported $0.66 earnings per share for the quarter, missing the consensus estimate of $0.67 by ($0.01), Zacks reports. Silver Standard Resources had a net margin of 12.17% and a return on equity of 14.87%.

Here are the key takeaways from Silver Standard Resources' conference call:

• Strategic repositioning completed: SSR Mining received approximately $1.5 billion from the Çöpler sale and exited Türkiye, ending the quarter with nearly $1.8 billion in cash and no debt.
• The company returned $338 million through share repurchases in the second quarter and reinstated its dividend, while continuing to execute a $500 million buyback program that management views as accretive at current valuations.
• First-half production was in line with expectations, and management reiterated full-year production guidance, with approximately 55%–60% of second-half output expected in the fourth quarter.
• Consolidated all-in sustaining costs are expected toward the upper end of guidance, with sustaining capital spending projected at roughly $230 million–$235 million versus the original $202 million plan, alongside exposure to higher fuel and other input costs.
• SSR increased growth investment across its portfolio, including Marigold, CC&V, Seabee and Puna; an updated Marigold technical report is expected by year-end and could outline mine-life extensions, while projects such as Porky West and VLF2 offer additional long-term upside.

Silver Standard Resources Price Performance

Shares of NASDAQ SSRM traded down $0.41 during midday trading on Tuesday, reaching $26.58. The company's stock had a trading volume of 4,765,732 shares, compared to its average volume of 2,967,045. The company has a current ratio of 5.33, a quick ratio of 4.57 and a debt-to-equity ratio of 0.01. The company has a market cap of $5.49 billion, a price-to-earnings ratio of 9.44, a price-to-earnings-growth ratio of 5.55 and a beta of -0.09. Silver Standard Resources has a one year low of $12.43 and a one year high of $36.51. The company has a 50 day moving average price of $28.23 and a 200 day moving average price of $28.71.

Hedge Funds Weigh In On Silver Standard Resources

A number of hedge funds and other institutional investors have recently modified their holdings of SSRM. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Silver Standard Resources by 96.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 410,046 shares of the basic materials company's stock valued at $4,113,000 after purchasing an additional 201,525 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Silver Standard Resources by 27.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,482,100 shares of the basic materials company's stock worth $24,895,000 after purchasing an additional 529,035 shares in the last quarter. AQR Capital Management LLC raised its stake in Silver Standard Resources by 461.5% in the first quarter. AQR Capital Management LLC now owns 86,050 shares of the basic materials company's stock valued at $863,000 after purchasing an additional 70,726 shares in the last quarter. Finally, Strs Ohio acquired a new stake in Silver Standard Resources during the first quarter worth about $50,000. Institutional investors and hedge funds own 68.30% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have commented on SSRM. Bank of America reduced their target price on Silver Standard Resources from $41.00 to $40.00 and set a "buy" rating on the stock in a report on Thursday, July 9th. UBS Group lowered their price target on Silver Standard Resources from $43.00 to $40.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Wall Street Zen cut Silver Standard Resources from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Zacks Research cut Silver Standard Resources from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 29th. Finally, Royal Bank Of Canada lowered their target price on shares of Silver Standard Resources from $40.00 to $39.00 and set an "outperform" rating for the company in a research note on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $41.60.

Silver Standard Resources Company Profile

Silver Standard Resources Inc NASDAQ: SSRM is a Vancouver‐based precious metals company engaged in the acquisition, exploration, development and production of silver and gold deposits primarily across the Americas. The company’s strategy centers on advancing high‐quality projects into production while maintaining a portfolio of operating mines that deliver consistent metal output. Silver Standard emphasizes sustainable resource development and community partnership at each stage of its operations.

The company’s principal producing assets include the Marigold gold mine in Nevada, which entered commercial production in 2006; the Seabee gold operation in Saskatchewan, Canada, acquired in 2016; and the Pirquitas silver‐gold mine in Argentina, which began producing in 2009.

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