Why Is Hecla Mining (HL) Down 8.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Hecla Mining (HL). Shares have lost about 8.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Hecla Mining due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.Hecla Mining's Q1 Earnings & Revenues Improve Y/Y on Higher PricesHecla Mining posted first-quarter 2026 earnings of 24 cents per share, missing the Zacks Consensus Estimate of 27 cents by 11%.Revenues came in at $411 million, up 100.3% year over year but 13.3% below the consensus mark of $474 million.  The quarter’s metal-price environment was supportive, with realized silver at $82.70 per ounce (up 146% year over year) and realized gold at $4,899 per ounce (up 46% year over year). This, along with higher sales volumes, led to the improvement in the quarter.  Hecla Mining’s Profits ImprovedTotal cost of sales in the first quarter was $158 million, up 15.8% from $136.7 million in the year-ago quarter. Gross profit surged 269% to $253 million from $69 million a year earlier.Adjusted EBITDA from continuing operations surged 243% to a record $265 million.Operational Highlights for Q1Hecla Mining reported silver production of around 3.9 million ounces, down 5% year over year. Higher output at Greens Creek was offset by declines at Lucky Friday and Keno Hill.Gold production dipped 6% year over year to 12,886 ounces.Silver payable ounces sold in the quarter were up 2% in the quarter to around 3.575 million ounces. Gold payable ounces sold were up 10% to 11,533 ounces. Greens Creek produced nearly 2.18 million ounces of silver, 8.7% higher than the last year quarter. Gold output was around 12,886 ounces, a 6% decline year over year. Lucky Friday produced 1.24 million ounces of silver in the quarter, a 7% decline from 1.33 million ounces in the year-ago quarter. At Keno Hill, silver production was about 0.49 million ounces, compared with 0.77 million ounces in the prior year quarter. Production was impacted by reduced power supply during extreme cold weather and lower silver milled grade. Management expects silver grade mined and milled to increase in the second quarter as sequencing improves. Hecla Mining Delivers Solid Cash Flows, Builds Balance Sheet StrengthHecla Mining generated cash flow from operating activities of around $183 million compared with $27.6 million in the prior year. Free cash flow was a record $144 million for the quarter, with all operations generating positive free cash flow. The company ended the quarter with cash and cash equivalents of around $588 million, a significant jump from $242.7 million at the end of 2025, benefiting from solid free cash flow and cash proceeds from the Casa Berardi sale.Total debt was reported at $266 million as of the quarter's end. Hecla redeemed its remaining $263 million of 7.25% Senior Notes on April 9, leaving the company with no long-term debt and a $225 million undrawn revolving credit facility (plus a $75 million accordion). Hecla Mining’s Outlook for 2026Looking ahead, Hecla expects consolidated silver production of 15.1-16.5 million ounces in fiscal 2026. Consolidated gold production is expected to be 51-55 thousand ounces.Exploration and pre-development investments are expected to nearly double to $55 million in fiscal 2026, with heightened focus across Greens Creek, Keno Hill, Lucky Friday and Nevada (Midas, Hollister and Aurora). The company also noted progress on key site initiatives, including continued work on the Lucky Friday surface cooling project, which was 81% complete at year-end and remains on track for mid-2026 completion. How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.The consensus estimate has shifted 42.86% due to these changes.VGM ScoresCurrently, Hecla Mining has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Hecla Mining has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks