The shine was off Pan American Silver (PAAS -9.79%) stock on Thursday. Investors traded out of the precious metals company after it published a disappointing second-quarter earnings report after the previous day's market close. In late-session trading, Pan American's stock was down by almost 10%.
Improvements not impressive enough
Pan American booked $1.12 billion in revenue for the period, well up from $812 million in the same quarter of 2025. Net income not under generally accepted accounting principles (non-GAAP, or adjusted) rose more sharply, almost doubling to $308 million, or $0.73 per share.
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Despite the improvements, analysts expected more. On average, their consensus revenue estimate was $1.16 billion, and their projection for adjusted earnings per share (EPS) was $0.92.
Pan American's attributable production of its namesake metal reached 6.5 million ounces, which was at the top end of its guidance range. It said that was due to strong performance at its La Colorada and Juanicipio mines.
However, Pan American also has gold mining operations, and these underperformed the company's expectations, producing only 165,900 ounces. Compounding that, management said total production this year will hit the bottom end of its guidance range.
NYSE: PAAS
Key Data Points
All that glitters
Given that current gold and silver prices are notably down from the all-time highs they hit earlier this year, I feel that Pan American didn't do badly in the quarter. It's still a very productive company, and I think investors should consider its stock a buy if prices hold near present levels.
