Wheaton Precious Metals Corp. Just Missed EPS By 17%: Here's What Analysts Think Will Happen Next

Investors in Wheaton Precious Metals Corp. (TSE:WPM) had a good week, as its shares rose 4.6% to close at CA$106 following the release of its yearly results. It was not a great result overall. While revenues of US$1.3b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 17% to hit US$1.17 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wheaton Precious Metals after the latest results.

See our latest analysis for Wheaton Precious Metals

Taking into account the latest results, the consensus forecast from Wheaton Precious Metals' 13 analysts is for revenues of US$1.65b in 2025. This reflects a sizeable 28% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 86% to US$2.17. In the lead-up to this report, the analysts had been modelling revenues of US$1.64b and earnings per share (EPS) of US$1.93 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of CA$110, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Wheaton Precious Metals analyst has a price target of CA$120 per share, while the most pessimistic values it at CA$102. This is a very narrow spread of estimates, implying either that Wheaton Precious Metals is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Wheaton Precious Metals' growth to accelerate, with the forecast 28% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Wheaton Precious Metals is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Wheaton Precious Metals' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Wheaton Precious Metals analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.