Silver Wheaton – Confident of achieving 2011 production guidance

Silver Wheaton Corp. (USA) (NYSE:SLW). Last Market Price: 36.59, Change: +0.20, % Change: (0.55%). Shares trade in the range of 34.81 – 36.85 dollars. It has a market capitalization of 12.93B dollars, making it a Large Cap Stock and has 353.30M outstanding shares. The company has a beta of 1.53, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the net income per share (EPS) is 1.01; P/E of 36.17 indicating high expected future growth in earnings. It operates in Basic Materials sector and belongs to Gold and Silver industry. Percentage shares held by institutional investors is 63%. The company has a 52 week Price range (low – high) of $ 25.84 – 47.60. Average volumes of shares traded daily are 6,780,000. Volume traded in the last session was at 4,070,000, 0.60 times the average volume.

• Reports Q3 (Sep)
• EPS of $0.38, worse than the estimates
• Revenues rose 99.6% year/year to $185.2 million

• Company States: During the quarter, several of our partners’ mines continued their focus on ramping up silver production, including Goldcorp’s (GG) Peoasquito mine, which had record throughput levels in the month of September. As a result, we remain confident of achieving our 2011 production guidance of between 25 and 26 million silver equivalent ounces.The Company’s operating cash flows more than doubled, despite sales continuing to lag production, which was primarily the result of concentrate inventory build-up at Glencore’s Yauliyacu mine in Peru. However, in 2012, Glencore anticipates a more consistent schedule of concentrate deliveries, which should result in more regular silver deliveries to Silver Wheaton

For Q2 (Jun ’11), It had a Net profit margin of 76.03%, an Operating margin of 77.18%. Other Key stats and ratios are : Return on average assets of 21.35%, Return on average equity of 24.53%. The organization has an employee strength of 24

Consensus Recommendation is a Outperform.

Estimate for sales for the Quarter Ending Dec-11 show a mean of 238.36 million dollars, an estimate high of 266.79 million dollars and an estimate low of 184.60 million dollars. A year ago the figures stood at 139.86 million dollars.

Estimate for sales for the Quarter Ending Mar-12 show a mean of 242.88 million dollars, an estimate high of 283.52 million dollars and an estimate low of 211.91 million dollars. A year ago the figures stood at 130.93 million dollars.

Estimate for EPS for the Quarter Ending Dec-11 show a mean of 0.56 dollars, an estimate high of 0.66 dollars and an estimate low of 0.39 dollars. A year ago the figures stood at 0.27 dollars.

Estimate for EPS for the Quarter Ending Mar-12 show a mean of 0.58 dollars, an estimate high of 0.66 dollars and an estimate low of 0.44 dollars. A year ago the figures stood at 0.23 dollars.

Sales for Quarter Ending Jun-11 was estimated at 217.75 million dollars, however the actual sales figure stood at 194.75 million dollars, 23 million dollars less than estimates.

Sales for Quarter Ending Mar-11 was estimated at 196.32 million dollars, however the actual sales figure stood at 158.18 million dollars, 38.13 million dollars less than estimates.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.