Will Silver Wheaton Beat These Analyst Estimates?

Silver Wheaton (NYSE: SLW  ) is expected to report Q2 earnings on Thursday. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Silver Wheaton's revenues will decrease -5.2% and EPS will compress -7.1%.

The average estimate for revenue is $184.6 million. On the bottom line, the average EPS estimate is $0.39.

Revenue details
Last quarter, Silver Wheaton tallied revenue of $199.6 million. GAAP reported sales were 26% higher than the prior-year quarter's $158.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.41. GAAP EPS of $0.41 for Q1 were 21% higher than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 87.5%, 10 basis points better than the prior-year quarter. Operating margin was 75.5%, 60 basis points worse than the prior-year quarter. Net margin was 73.7%, 350 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $814.0 million. The average EPS estimate is $1.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,592 members rating the stock outperform and 105 members rating it underperform. Among 515 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 489 give Silver Wheaton a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silver Wheaton is outperform, with an average price target of $47.18.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On August 06, 2012, at 1:14 PM, speedybure wrote:

    Q2 estimates should surprise relatively speaking , much of this depending on when it's sales we're made. Yes, lower silver prices will have a big impact ,not to mention a shortfall at Penasquisto BUT if my guess is an increased delivery from yauliyacu albeit not better than past quarters and Primero starting to run dimas like everyone thought. All in all eps could very well be inline or just 1c shy of q1. Well see"..........

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