Shares of A-Mark Precious Metals (NASDAQ: AMRK) plummeted 9.09% in pre-market trading on Thursday, following the release of disappointing third-quarter financial results. The precious metals trading firm reported an unexpected loss and significantly missed earnings estimates, overshadowing its better-than-expected revenue performance.
A-Mark reported a quarterly loss of $0.36 per share, falling drastically short of the analyst consensus estimate of $0.59 profit per share. This represents a stark reversal from earnings of $0.21 per share in the same period last year. The company's bottom line was severely impacted, with a net loss of $8.5 million for the quarter. Even on an adjusted basis, A-Mark's earnings of $0.24 per share missed the $0.59 estimate by 59.32%.
Despite the earnings disappointment, A-Mark's quarterly sales reached $3.01 billion, surpassing the analyst consensus estimate of $2.80 billion by 7.49%. This figure marks a 15.30% increase over sales of $2.61 billion in the same period last year. However, the company's profitability appears to be under pressure, with a gross profit of $41 million and a gross margin of just 1.36%. The substantial earnings miss and unexpected loss seem to be the primary drivers behind the sharp stock decline, as investors express concern about A-Mark's ability to maintain profitability in the current market environment.
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