Wheaton (WPM) Q3 Earnings & Sales Miss Estimates, Down Y/Y
Wheaton's (WPM) top line declines due to a reduction in average realized gold equivalent price and lower number of gold equivalent ounces sold in Q3.
Wheaton Precious Metals Corp. WPM reported adjusted earnings per share of 30 cents in third-quarter 2021, missing the Zacks Consensus Estimate of 33 cents. The bottom-line figure declined 10.1% year over year.
The company generated revenues of $269 million during the reported quarter, down 12.5% on a year-over-year basis. The downside resulted from a 4% decline in the average realized gold equivalent price and a 9% fall in the number of gold equivalent ounces sold. The top line also missed the Zacks Consensus Estimate of $300 million.
Wheaton’s gold production was 85,941 ounces, down from the prior-year quarter’s 90,500 ounces. Attributable silver production increased 6.1% year over year to 6,394 ounces, while palladium production declined 6.2% to 5,105 ounces. The company sold 152,432 GEOs during the September-end quarter, 8.5% down from the prior-year quarter’s 166,611 GEOs.
Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise
In third-quarter 2021, the average realized gold price was $1,795 per ounce. The figure was 6% lower than the year-ago quarter’s figure. Silver prices averaged $26.80 per ounce in the reported quarter, up 8.5% year on year. Palladium prices increased 11.2% year over year to $2,426 per ounce.
The company had $372 million of cash in hand at the end of third-quarter 2021 compared with $193 million at the end of 2020. It recorded an operating cash flow of $201 million in the third quarter compared with the prior-year quarter’s $228 million. The company fully paid a revolving credit facility of $2 billion.
During the third quarter, the company announced a quarterly dividend of 15 cents per share, reflecting an increase of 25% from the year-ago quarter.
Wheaton’s attributable production is estimated between 735,000 GEOs and 765,000 GEOs for the current year. Gold production is expected in the band of 330,000-345,000 ounces. Silver production is projected between 25.5 million ounces and 26.5 million ounces, while production of other metals is anticipated in the band of 45,000-55,000 GEOs.
Shares of Wheaton have lost 11.2%, over the past year, as against the industry’s growth of 13.1%.
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Zacks Rank & Stocks to Consider
Wheaton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Olin Corporation OLN, Nucor Corporation NUE and Bunge Limited BG. All of these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 740% for the current fiscal year. The company’s shares have surged 229% in the past year.
Nucor has a projected earnings growth rate of around 583% for 2021. The company’s shares have soared 128% in a year’s time.
Bunge has an estimated earnings growth rate of around 26% for the current year. The company’s shares have appreciated 60% in the past year.
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