Wheaton Precious Metals Q4 Revenue and Profit Shrink

Wheaton Precious Metals (TSE: WPM) (NYSE: WPM), a multinational precious metals streaming company, posted lower revenue and earnings in its fourth quarter.

Revenue & Earnings

Revenue came in at $278.2 million in the fourth quarter, a decrease of 2.8% from $286.2 million in the prior-year quarter. Operating cash flows decreased by 6.1%, from $208 million to $195.3 million.

The company posted net earnings of $291.8 million ($0.648 per share) in Q4 2021, compared to $157.2 million ($0.45 per share) in Q4 2020.

On an adjusted basis, Wheaton earned $132.2 million ($0.293 per share) in the fourth quarter of 2021, compared to $149.4 million ($0.333 per share) a year ago.

In 2021, attributable production came in at 752,958 gold equivalent ounces (GEOs). This is in line with the company’s guidance.

CEO Commentary

Wheaton president and CEO Randy Smallwood said, “Wheaton generated record annual revenue and operating cash flow in 2021 as our diversified portfolio of high-quality, long-life assets delivered strong results. We are proud of the value we were able to return to o shareholders resulting from our record-setting performance, with total dividends paid in 2021 increasing by over 35% from 2020. In 2021, Wheaton also remained focused on accretive growth, and over the past three months alone, we added five new streams to our already robust portfolio. This additional growth is readily apparent in our ten-year production forecast, where we see annual production climbing to well over 900,000 gold equivalent ounces.”

Wall Street’s Take

Following the results, Barclays analyst Matthew Murphy kept a Hold rating on WPM and raised its price target to $45 (C$57.51). This implies 3.3% downside potential.

Overall, consensus on the Street is that WPM is a Strong Buy based on nine Buys and two Holds. The average Wheaton Precious Metals price target of C$65.22 implies 7.9% upside potential to current levels.

TipRanks’ Smart Score

WPM scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns are likely to be better than the overall market.

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