Should You Buy, Sell or Hold PAAS Stock Before Q4 Earnings Release?

Core Viewpoint - Pan American Silver Corp. (PAAS) is expected to report strong fourth-quarter results for 2025, with significant increases in both sales and earnings compared to the previous year [1][4]. Financial Performance - The Zacks Consensus Estimate for total sales in Q4 2025 is $1.18 billion, reflecting a 36.5% increase from the same quarter last year [1]. - Earnings per share (EPS) is projected at 90 cents, indicating a 157% year-over-year increase from 35 cents [1]. - The company has a history of earnings surprises, beating estimates in two of the last four quarters, with an average surprise of 31.6% [2]. Production and Operational Highlights - Pan American Silver achieved a record silver output of 7.3 million ounces in Q4 2025, surpassing expectations at the Juanicipio mine [4][6]. - The company produced 197.8 thousand ounces of gold in Q4 2025, down from 224 thousand ounces in the prior-year quarter due to the cessation of operations at the La Arena and Dolores mines [7]. - The increase in silver output and higher prices are expected to positively impact revenues for the quarter [8]. Market Context - Gold prices remained near record highs during the October-December period, driven by uncertainty in U.S. trade policies and strong demand from central banks [8]. - The rising prices of gold and silver are benefiting peers in the industry, such as Avino Silver & Gold Mines Ltd. and First Majestic Silver Corp. [9][10]. Stock Performance and Valuation - Over the past year, PAAS shares have increased by 140.6%, while the industry has seen a growth of 199.4% [11]. - The stock is currently trading at a forward price-to-earnings multiple of 15.69X, which is below the industry average of 18.91X [13]. Strategic Positioning - Pan American Silver has strengthened its position as a leading precious metal producer in the Americas through a diversified asset base and strategic acquisitions, including the recent buyout of MAG Silver [15][16]. - The company is focused on advancing its exploration strategy and increasing shareholder value through ongoing investments in growth initiatives [17].