A month has passed by because the final earnings report for Wheaton Treasured Metals Corp. (WPM). Shares have added about 10.1% in that timeframe, outperforming the S&P 500.
Will the current optimistic pattern proceed main as much as its subsequent earnings launch, or is Wheaton Treasured Metals due for a pullback? Earlier than we dive into how traders and analysts have reacted as of late, let’s take a fast take a look at its most up-to-date earnings report in an effort to get a greater deal with on the vital drivers.
Wheaton Treasured Metals Q2 Earnings Beat Estimates, Revenues Up Y/Y
Wheaton Treasured Metals reported adjusted earnings per share of 33 cents in second-quarter 2024, which surpassed the Zacks Consensus Estimate of 29 cents. The underside line improved 4.8% yr over yr.
Wheaton Treasured Metals generated revenues of round $299 million, which improved 12.9% on a year-over-year foundation. The upside was brought on by an 18% enhance in common realized value, which was partially negated by a 4% decline in gold equal ounces (GEOs) bought. The highest line beat the Zacks Consensus Estimate of $292 million.
Wheaton Treasured Metals’ gold manufacturing was 84,993 ounces, up from the prior-year quarter’s 83,180 ounces. Attributable silver manufacturing elevated 14% yr over yr to five,062 ounces and palladium manufacturing elevated 11.8% to 4,338 ounces. The corporate produced 147,059 GEOs within the June-end quarter, up 7.2% from the prior-year quarter’s 137,176 GEOs.
Wheaton Treasured Metals bought 124,009 GEOs, down 4.4% from the final yr’s quarter.
Costs
Within the second quarter, the common realized gold value was $2,356 per ounce. The determine was 18.6% increased than the year-ago quarter. Silver costs had been $29.11 per ounce, up 20.6% yr over yr. Palladium costs had been $979 per ounce in contrast with $1,438 per ounce within the prior-year quarter. Cobalt costs improved 21.1% yr over yr to $16.02 per pound.
Monetary Place
The corporate had round $540 million of money in hand on the finish of the second quarter of 2024 in contrast with $547 million on the finish of 2023. It reported an working money move of $234 million in contrast with $202 million within the prior-year quarter. The corporate has a $2 billion undrawn revolving credit score facility. The maturity date has been prolonged to Jun 25, 2029.
2024 Steerage
Wheaton Treasured Metals tasks attributable manufacturing to be between 550,000 GEOs and 620,000 GEOs. Notably, it produced 584,389 GEOs in 2023. Gold manufacturing is predicted to be within the vary of 325,000-370,000 ounces, indicating a slight decline from the 374,585 produced in 2023. Silver manufacturing is projected between 18.5 million and 20.5 million ounces, indicating development from 17.2 million ounces within the prior yr. The manufacturing of different metals is anticipated to be within the vary of 12,000-15,000 GEOs. WPM produced 12,275 GEOs of different metals in 2023.
How Have Estimates Been Transferring Since Then?
It seems, contemporary estimates have trended upward through the previous month.
VGM Scores
At present, Wheaton Treasured Metals has a median Progress Rating of C, although it’s lagging a bit on the Momentum Rating entrance with a D. Charting a considerably comparable path, the inventory was allotted a grade of F on the worth aspect, placing it within the backside 20% quintile for this funding technique.
Total, the inventory has an combination VGM Rating of F. Should you aren’t centered on one technique, this rating is the one you need to be taken with.
Outlook
Estimates have been trending upward for the inventory, and the magnitude of those revisions appears to be like promising. Notably, Wheaton Treasured Metals has a Zacks Rank #3 (Maintain). We count on an in-line return from the inventory within the subsequent few months.
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Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report
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