Why A-Mark Precious Metals Stock Is Sinking Today

What happened

Shares of A-Mark Precious Metals (NASDAQ:AMRK) tumbled more than 13% by 12:15 p.m. ET on Tuesday. Weighing on the precious metals stock was its fiscal second-quarter results.

So what

A-Mark Precious Metals reported $1.95 billion of revenue for its fiscal second quarter, which was in line with the analysts' consensus estimate. Revenue was 0.2% above the year-ago tally and 3% higher than the sequential quarter.

However, the company's earnings per share came in at $1.35, which missed analysts' expectations by $0.05 per share. While that was up 4% from the year-ago period, it was 16% below the prior quarter.

The company's gold ounces sold declined by 10% to 565,000 ounces. On a more positive note, silver ounces sold increased by 19% to 38.1 million ounces. The company also grew its direct-to-consumer business, as new customers increased by 230%. More than half of those customers came from its BGASC acquisition in October.

The integrated precious metals platform continued to actively expand its business. It recently purchased a 12% interest in Texas Precious Metals, a leading e-commerce precious metals retailer focused on the Texas market. It also recently agreed to acquire a 25% minority interest in Atkinsons Bullion & Coins, a leading U.K.-based online retailer of precious metals, bullion, and coins.

Now what

A-Mark Precious Metals believes its strategy of operating a fully integrated precious metals platform will continue to generate positive results, even if market conditions are more modest. Meanwhile, it sees the opportunity to produce higher returns when there's more market volatility. Add in the continued impact of acquisitions, and A-Mark believes it's in an excellent position to enhance shareholder value in the future.

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Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.