Is WPM's declining EPS trend in 2024 a long-term concern?

**Wheaton Precious Metals' (WPM) declining EPS trend in 2024 may not be a long-term concern**. Here's why: 1. **Contextualizing the Decline**: WPM's EPS is expected to decline year-over-year in 2024's fourth quarter (Q4), dropping to $0.30 per share, a 3.2% decrease from the previous year's Q4. This decline is set against a backdrop of higher revenues, with estimated sales of $293.07 million for Q4, a 10.6% increase from the year before. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |WPM|WPM.N|Wheaton Precious|2024 Q1|47.15447154471544|0.362|169| |WPM|WPM.N|Wheaton Precious|2024 Q2|-13.782051282051277|0.269|169| |WPM|WPM.N|Wheaton Precious|2024 Q3|32.29571984435798|0.34|169| 2. **Analyst Expectations and Revisions**: - Analysts have revised their EPS estimates upward by 9.37% over the last 30 days, indicating a more optimistic view of WPM's earnings potential in the near term. - The consensus for Q4 revenues is slightly above WPM's estimated sales, at $293.07 million, suggesting that analysts do not expect revenue growth to be the sole driver of earnings decline. 3. **Historical Performance and Future Outlook**: - WPM has a track record of surpassing consensus EPS estimates two out of the last four quarters, indicating that the company has historically outperformed expectations. - Looking ahead, WPM's earnings are expected to grow in the upcoming quarter, with estimated EPS of $0.35, a 29.6% increase from the previous year's Q4. 4. **Market Reaction and Management's Role**: - The market's reaction to WPM's earnings reports will be influenced by management's discussion of business conditions during the earnings call. Positive comments could mitigate concerns about the EPS decline. - WPM's shares have outperformed the market so far in 2024, suggesting that the market may not be overly concerned about the current earnings trends. 5. **Industry Position and Growth Prospects**: - WPM's position within the mining industry, coupled with expected revenue growth and a positive earnings outlook for the upcoming quarter, could indicate that the EPS decline is more of a short-term fluctuation rather than a long-term trend. In conclusion, while WPM's EPS decline in 2024 is a fact, the broader context of rising revenues, analyst revisions, and future growth expectations suggest that this trend may not be a long-term concern for investors. However, investors should continue to monitor WPM's performance closely, especially in light of any changes in market conditions or company-specific factors that could impact earnings.