New Forecasts: Here's What Analysts Think The Future Holds For First Majestic Silver Corp. (TSE:AG)

Shareholders in First Majestic Silver Corp. (TSE:AG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that First Majestic Silver will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for First Majestic Silver from its three analysts is for revenues of US$740m in 2025 which, if met, would be a sizeable 41% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.14 per share next year. Prior to this update, the analysts had been forecasting revenues of US$611m and earnings per share (EPS) of US$0.14 in 2025. Sentiment certainly seems to have improved in recent times, with a great increase in revenue and a modest lift to earnings per share estimates.

View our latest analysis for First Majestic Silver

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that First Majestic Silver's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that First Majestic Silver is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at First Majestic Silver.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for First Majestic Silver going out to 2026, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.