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Wheaton (WPM) Q4 Earnings & Sales Lag Estimates, Decline Y/Y

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Wheaton Precious Metals Corp. (WPM - Free Report) reported adjusted earnings per share (EPS) of 23 cents in fourth-quarter 2022, missing the Zacks Consensus Estimate of 24 cents. The bottom line declined 21% year over year.

The company generated revenues of $236 million in the reported quarter, down 15.1% on a year-over-year basis. The downside was caused by a 6% decline in the average realized gold equivalent price and a 10% decrease in Gold Equivalent Ounces (GEOs) sold. The top line also missed the Zacks Consensus Estimate of $243.8 million.

Wheaton’s gold production was 70,099 ounces, down 19.7% from the prior-year quarter’s 87,296 ounces. Attributable silver production declined 15.8% year over year to 5,352 ounces and palladium production declined 18.3% to 3,869 ounces. The company produced 148,323 GEOs in the December-end quarter, down 19.6% from the prior-year quarter’s 184,551 GEOs.

Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise

 

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 2022, the average realized gold price was $1,725 per ounce. The figure was 4.1% lower than the year-ago quarter. Silver prices were $21.52 per ounce in the reported quarter, down 8% year over year. Palladium prices were $1,939 per ounce compared with the prior-year quarter’s $1,918.

Financial Position

The company had $696 million of cash on hand at the end of 2022 compared with $226 million at the end of 2021. It recorded an operating cash flow of $743 million in 2022 compared with $845 million in 2021. The company has a $2-billion undrawn revolving credit facility.

In the fourth quarter, the company announced a quarterly dividend of 15 cents per share.

Business Update

On Dec 6, 2022, Wheaton closed the previously announced termination of its silver stream on the Yauliyacu mine in Peru. On Aug 18, 2022, the company inked a deal with Glencore plc (GLNCY - Free Report) to terminate the silver stream for a cash payment of $150 million, less the aggregate value of any deliveries to WPM prior to the closing of silver produced after Dec 31, 2021. Wheaton received a cash payment of $132 million post the deal completion.

2022 Performance

Wheaton reported an adjusted EPS of $1.12 in 2022 compared with $1.32 in the prior year. Earnings missed the Zacks Consensus Estimate of $1.13.

Sales were down 11.4% year over year to $1.06 billion. The top line missed the Zacks Consensus Estimate of $1.07 billion.

Guidance

Wheaton projects attributable production between 600,000 GEOs and 660,000 GEOs for 2023. Gold production is expected to be 320,000-350,000 ounces. Silver production is projected between 20 million ounces and 22 million ounces, while the production of other metals is anticipated to be 22,000-25,000 GEOs.

Price Performance

Shares of Wheaton have lost 20.5% in the past year compared with the industry’s fall of 21.2%.

 

Zacks Investment Research
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 are CalMaine Foods, Inc. (CALM - Free Report) , and Carpenter Technology Corporation (CRS - Free Report) . CALM currently flaunts a Zacks Rank #1 (Strong Buy) and CRS has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. The consensus estimate for fiscal 2023 has moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 27.6% in the past year.

The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2023 earnings per share is pegged at $1.05, suggesting 199.1% growth from the year-ago reported figure. CRS has a trailing four-quarter earnings surprise of 33.6%, on average. Its shares have gained 31.7% in the past year.

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