The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Silver Wheaton beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded significantly.
Margins shrank across the board.
Silver Wheaton reported revenue of $287.2 million. The five analysts polled by S&P Capital IQ predicted revenue of $256.3 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $191.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.50 for Q4 were 22% higher than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 85.0%, 230 basis points worse than the prior-year quarter. Operating margin was 65.2%, 990 basis points worse than the prior-year quarter. Net margin was 61.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $274.0 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $2.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,630 members out of 2,741 rating the stock outperform, and 111 members rating it underperform. Among 491 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 468 give Silver Wheaton a green thumbs-up, and 23 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 $47.13.
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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 position in any of the stocks mentioned. 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.