A month has gone by since the last earnings report for Wheaton Precious Metals Corp. (WPM). Shares have added about 10.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Wheaton Precious Metals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Wheaton Precious Metals Q2 Earnings Beat Estimates, Revenues Up Y/Y

Wheaton Precious Metals reported adjusted earnings per share of 33 cents in second-quarter 2024, which surpassed the Zacks Consensus Estimate of 29 cents. The bottom line improved 4.8% year over year. 

Wheaton Precious Metals generated revenues of around $299 million, which improved 12.9% on a year-over-year basis. The upside was caused by an 18% increase in average realized price, which was partially negated by a 4% decline in gold equivalent ounces (GEOs) sold. The top line beat the Zacks Consensus Estimate of $292 million.

Wheaton Precious Metals’ gold production was 84,993 ounces, up from the prior-year quarter’s 83,180 ounces. Attributable silver production increased 14% year over year to 5,062 ounces and palladium production increased 11.8% to 4,338 ounces. The company produced 147,059 GEOs in the June-end quarter, up 7.2% from the prior-year quarter’s 137,176 GEOs.
Wheaton Precious Metals sold 124,009 GEOs, down 4.4% from the last year’s quarter.

Prices

In the second quarter, the average realized gold price was $2,356 per ounce. The figure was 18.6% higher than the year-ago quarter. Silver prices were $29.11 per ounce, up 20.6% year over year. Palladium prices were $979 per ounce compared with $1,438 per ounce in the prior-year quarter. Cobalt prices improved 21.1% year over year to $16.02 per pound.

Financial Position

The company had around $540 million of cash in hand at the end of the second quarter of 2024 compared with $547 million at the end of 2023. It reported an operating cash flow of $234 million compared with $202 million in the prior-year quarter. The company has a $2 billion undrawn revolving credit facility. The maturity date has been extended to Jun 25, 2029.

2024 Guidance

Wheaton Precious Metals projects attributable production to be between 550,000 GEOs and 620,000 GEOs. Notably, it produced 584,389 GEOs in 2023. Gold production is expected to be in the range of 325,000-370,000 ounces, indicating a slight decline from the 374,585 produced in 2023. Silver production is projected between 18.5 million and 20.5 million ounces, indicating growth from 17.2 million ounces in the prior year. The production of other metals is anticipated to be in the range of 12,000-15,000 GEOs. WPM produced 12,275 GEOs of other metals in 2023.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, Wheaton Precious Metals has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Wheaton Precious Metals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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