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Wheaton (WPM) Q4 Earnings & Sales Miss Estimates, Down Y/Y
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Wheaton Precious Metals Corp. (WPM - Free Report) reported adjusted earnings per share (EPS) of 29 cents in fourth-quarter 2021, missing the Zacks Consensus Estimate of 30 cents. The bottom line declined 12% year over year.
The company generated revenues of $278 million during the reported quarter, down 3% on a year-over-year basis. The downside was caused by a 5% decline in the average realized gold equivalent price, partly offset by a 2% increase in the number of Gold Equivalent Ounces (GEOs) sold. The top line also missed the Zacks Consensus Estimate of $285 million.
Wheaton’s gold production was 88,321 ounces, down from the prior-year quarter’s 92,039 ounces. Attributable silver production declined 2.4% year over year to 6,356 ounces and palladium production declined 17% to 4,733 ounces. The company sold 158,864 GEOs during the December-end quarter, up 2% from the prior-year quarter’s 155,665 GEOs.
Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise
In fourth-quarter 2021, the average realized gold price was $1,798 per ounce. The figure was 4.5% lower than the year-ago quarter’s figure. Silver prices averaged $23.36 per ounce in the reported quarter, down 5.5% year on year. Palladium prices fell 18.3% year over year to $1,918 per ounce.
Financial Position
The company had $226 million of cash in hand at the end of 2021 compared with $193 million at the 2020-end. It recorded an operating cash flow of $845 million in 2021 compared with $765 million in 2020. The company fully paid a revolving credit facility of $2 billion.
During the fourth quarter, the company announced a quarterly dividend of 15 cents per share, reflecting an increase of 25% from the year-ago quarter’s levels.
Business Update
On Dec 14, Wheaton entered into a new precious metals purchase agreement (PMPA) with Artemis Gold Inc. to acquire silver production from Blackwater Gold Project. The company also entered into an agreement with New Gold Inc. (NGD - Free Report) to acquire the existing gold stream from the project. Wheaton will pay New Gold an upfront consideration of $300 million after the gold stream deal’s closure. The company will pay Artemis a total cash consideration of $141 million, payable in four equal installments during the construction of the Blackwater Project.
On Dec 22, Wheaton entered into a PMPA with Generation Mining Limited in relation to acquiring gold and platinum production from the Marathon Project.
On Jan 17, 2022, Wheaton entered into another PMPA with Alliance Metals International, a subsidiary of Adventus Mining Corporation, to acquire gold and silver streams from the Adventus Curipamba Project.
2021 Performance
Wheaton reported an adjusted EPS of $1.32 in 2021 compared with $1.12 reported in the prior year. Earnings meet the Zacks Consensus Estimate.
Sales were up 9.6% year over year to a record $1.20 billion. The top line missed the Zacks Consensus Estimate of $1.21 billion.
Guidance
Wheaton’s attributable production is estimated between 700,000 GEOs and 760,000 GEOs for the current year. Gold production is expected in the band of 350,000-380,000 ounces. Silver production is projected between 23.0 million ounces and 25.0 million ounces, while production of other metals is anticipated in the band of 44,000-48,000 GEOs.
Price Performance
Shares of Wheaton have gained 26.1% in the past year compared with the industry’s growth of 13.1%.
Teck Resources has a projected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for TECK's current year earnings has been revised upward by 33% in the past 60 days.
Teck Resources beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13%. TECK’s shares have surged around 95% in a year.
Cabot has a projected earnings growth rate of 15.5% for fiscal 2022. The Zacks Consensus Estimate for CBT’s fiscal 2022 earnings has been revised upward by 8% in the past 60 days.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 21.6%. CBT has rallied around 49% in a year.
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Wheaton (WPM) Q4 Earnings & Sales Miss Estimates, Down Y/Y
Wheaton Precious Metals Corp. (WPM - Free Report) reported adjusted earnings per share (EPS) of 29 cents in fourth-quarter 2021, missing the Zacks Consensus Estimate of 30 cents. The bottom line declined 12% year over year.
The company generated revenues of $278 million during the reported quarter, down 3% on a year-over-year basis. The downside was caused by a 5% decline in the average realized gold equivalent price, partly offset by a 2% increase in the number of Gold Equivalent Ounces (GEOs) sold. The top line also missed the Zacks Consensus Estimate of $285 million.
Wheaton’s gold production was 88,321 ounces, down from the prior-year quarter’s 92,039 ounces. Attributable silver production declined 2.4% year over year to 6,356 ounces and palladium production declined 17% to 4,733 ounces. The company sold 158,864 GEOs during the December-end quarter, up 2% from the prior-year quarter’s 155,665 GEOs.
Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise
Wheaton Precious Metals Corp. price-consensus-eps-surprise-chart | Wheaton Precious Metals Corp. Quote
Prices
In fourth-quarter 2021, the average realized gold price was $1,798 per ounce. The figure was 4.5% lower than the year-ago quarter’s figure. Silver prices averaged $23.36 per ounce in the reported quarter, down 5.5% year on year. Palladium prices fell 18.3% year over year to $1,918 per ounce.
Financial Position
The company had $226 million of cash in hand at the end of 2021 compared with $193 million at the 2020-end. It recorded an operating cash flow of $845 million in 2021 compared with $765 million in 2020. The company fully paid a revolving credit facility of $2 billion.
During the fourth quarter, the company announced a quarterly dividend of 15 cents per share, reflecting an increase of 25% from the year-ago quarter’s levels.
Business Update
On Dec 14, Wheaton entered into a new precious metals purchase agreement (PMPA) with Artemis Gold Inc. to acquire silver production from Blackwater Gold Project. The company also entered into an agreement with New Gold Inc. (NGD - Free Report) to acquire the existing gold stream from the project. Wheaton will pay New Gold an upfront consideration of $300 million after the gold stream deal’s closure. The company will pay Artemis a total cash consideration of $141 million, payable in four equal installments during the construction of the Blackwater Project.
On Dec 22, Wheaton entered into a PMPA with Generation Mining Limited in relation to acquiring gold and platinum production from the Marathon Project.
On Jan 17, 2022, Wheaton entered into another PMPA with Alliance Metals International, a subsidiary of Adventus Mining Corporation, to acquire gold and silver streams from the Adventus Curipamba Project.
2021 Performance
Wheaton reported an adjusted EPS of $1.32 in 2021 compared with $1.12 reported in the prior year. Earnings meet the Zacks Consensus Estimate.
Sales were up 9.6% year over year to a record $1.20 billion. The top line missed the Zacks Consensus Estimate of $1.21 billion.
Guidance
Wheaton’s attributable production is estimated between 700,000 GEOs and 760,000 GEOs for the current year. Gold production is expected in the band of 350,000-380,000 ounces. Silver production is projected between 23.0 million ounces and 25.0 million ounces, while production of other metals is anticipated in the band of 44,000-48,000 GEOs.
Price Performance
Shares of Wheaton have gained 26.1% in the past year compared with the industry’s growth of 13.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Wheaton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Teck Resources (TECK - Free Report) and Cabot Corporation (CBT - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Teck Resources has a projected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for TECK's current year earnings has been revised upward by 33% in the past 60 days.
Teck Resources beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13%. TECK’s shares have surged around 95% in a year.
Cabot has a projected earnings growth rate of 15.5% for fiscal 2022. The Zacks Consensus Estimate for CBT’s fiscal 2022 earnings has been revised upward by 8% in the past 60 days.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 21.6%. CBT has rallied around 49% in a year.