Shares of Silvercorp Metals Inc (NYSE: SVM) tumbled 5.68% in after-hours trading on Thursday, despite the company reporting strong financial results for the fourth quarter and fiscal year 2025. The sharp decline came as the mining company's earnings per share fell short of analyst expectations, overshadowing significant year-over-year growth across various metrics.
Silvercorp reported adjusted earnings of $0.07 per share for the fourth quarter, missing the analyst consensus estimate of $0.08 by 12.5%. However, this figure represents a substantial 250% increase from the $0.02 per share earned in the same period last year. The company's quarterly revenue came in at $75.11 million, slightly below the expected $75.84 million but showing a robust 75.99% year-over-year growth.
For the full fiscal year 2025, Silvercorp posted impressive results, with adjusted net income attributable to shareholders reaching $75.1 million, or $0.37 per share, up 91% from the previous year. Cash flow from operating activities surged to $138.6 million, marking a 51% increase. Despite these strong fundamentals, investors seemed to focus on the earnings miss, triggering the after-hours sell-off.
The company's operational performance also showed improvements, with silver equivalent production increasing by 11% to 7.589 million ounces for the fiscal year. Silvercorp maintained a strong financial position, ending the period with $369.1 million in cash and short-term investments, doubling from the previous year.
While the market's immediate reaction appears negative, some analysts suggest that the sell-off might be an overreaction, given the company's overall strong performance and growth trajectory. Investors will likely be watching closely to see if Silvercorp can maintain its growth momentum and meet expectations in the coming quarters.
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