Silver Wheaton Increases Sales but Misses Revenue Estimate

Silver Wheaton (NYS: SLW) reported earnings on yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Silver Wheaton missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.

Gross margins improved, operating margins grew, net margins dropped.

Revenue details
Silver Wheaton logged revenue of $191.9 million. The five analysts polled by S&P Capital IQ foresaw revenue of $202.3 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $149.6 million.

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

EPS details
EPS came in at $0.41. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.41 for Q4 were 17% higher than the prior-year quarter's $0.35 per share.

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

Margin details
For the quarter, gross margin was 87.3%, 250 basis points better than the prior-year quarter. Operating margin was 75.1%, 540 basis points better than the prior-year quarter. Net margin was 75.4%, 680 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $216.7 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $2.32.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,531 members out of 2,646 rating the stock outperform, and 115 members rating it underperform. Among 598 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 573 give Silver Wheaton a green thumbs-up, and 25 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 $50.15.

Worried about inflation? Interested in gold? Find out the best way to profit in both scenarios a little-known company we profile in, "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.

• Add Silver Wheaton to My Watchlist.

At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.