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Wheaton Precious Metals (WPM) to Post Q1 Earnings: What's Up?

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Wheaton Precious Metals Corp. (WPM - Free Report) is set to release first-quarter 2019 results on May 8, after the bell.

The stock has lost 2.1% in the past year compared with the industry’s 2% decline.

Some Factors at Play

In February 2019, the company released full-year 2019 guidance.

The company expects to produce roughly 365,000 ounces of gold, 24.5 million ounces of silver and 22,000 ounces of palladium in 2019.

Gold production in 2019 is likely to be lower than last year due to lower grades at Salobo. This is mainly because of mine sequencing, which is most pronounced in the first quarter of 2019. However, this is expected to be partly offset by higher attributable gold production from the San Dimas mine.

Also, the company expects palladium production to increase this year. In fourth-quarter 2018 earnings call, management stated that recent acquisitions are expected to support gold and palladium production in the Stillwater mines.

Notably, the Zacks Consensus Estimate for first-quarter total revenues is currently pegged at $203 million, indicating a rise of roughly 2% from the year-ago reported figure.

What the Zacks Model Says

Our proven model does not conclusively show that Wheaton Precious Metals is likely to beat estimates in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. But that is not the case here, as you will see below:

Earnings ESP: Wheaton Precious Metals has an Earnings ESP of -4.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at 12 cents and 13 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Wheaton Precious Metals currently carries a Zacks Rank #3, which when combined with a negative ESP makes surprise prediction difficult.  

Note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks Poised to Beat Estimates

Here are some companies worth considering in the same space as per our model, these have the right mix of elements to beat estimates this time around.

Intrepid Potash, Inc (IPI - Free Report) has an Earnings ESP of +25.00% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bunge Limited (BG - Free Report) has an Earnings ESP of +5.00% and carries a Zacks Rank #3.

Covia Holdings Corporation (CVIA - Free Report) has an Earnings ESP of +17.34% and Zacks Rank #3.

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