Silver Wheaton Corp. (SLW, Financial) will announce third-quarter results today. The quarterly report will be released by the silver streamer after the stock market closes.
On average, analysts expect EPS of 21 cents for the third quarter of 2016. This figure ranges between 24 cents (high) and 17 cents (low). If the company does report EPS of 21 cents, it will represent a 75% increase on a year over year basis from the 12 cents that was reported in the same quarter of 2015.
Source: Yahoo Finance
As of today, Silver Wheaton has 440.21 million shares outstanding, which means the profit will range between $74.8 million and $105.7 million.
Concerning the revenue, analysts expect average revenue of $261.6 million, a 70.70% increase in sales on a year over year basis. The average figure of revenue ranges between $246.5 million (low) and $272.8 million (high).
Source: Yahoo Finance
In the previous quarter, the streamer generated EPS of 14 cents.
Source: Yahoo Finance
Analysts forecast 75% positive growth for the current quarter and a little over 57% growth for the next quarter.
Source: Yahoo Finance
The Federal Reserve's move to keep interest rates low has put pressure on the precious metal, increasing prices since the beginning of the year. This has also been true for silver as the price increased by nearly 30% on a year over year basis, from $14.97 per troy ounce in the third quarter of 2015 to $19.42 per troy ounce in the third quarter of 2016.
An improvement in Silver Wheaton’s revenue and earnings for the third quarter is expected. The earnings release later today will reveal whether the silver streamer will miss, meet or beat expectations on revenue and earnings.
However, regardless of third quarter results for which les jeux sont faits, the election of Donald Trump as the next U.S. president may have a repercussion on the share price of Silver Wheaton.
Yesterday, Silver Wheaton Corp. closed at $23.56 per share, up 22 cents (0.94%) from the previous trading day, with 4,406,479 shares traded on the New York Stock Exchange.
Silver Wheaton Corp. has risen 89% year to date and is uptrending again after a three-month period when the stock lost nearly 27%.
The majority of analysts recommend buying Silver Wheaton. Analysts determined an average target price of $33.75 per share versus the current share price of $23.56.
The EV/EBITDA is 22.91 and the price-book ratio (mrq) is 2.14.
Disclosure: I have no positions in Silver Wheaton Corp.
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