Piedmont Lithium Inc Expected To Post A Loss Of 58 Cents A Share - Earnings

Wheaton Precious Metals Corp. (WPM) came out with quarterly earnings of $0.34 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.33, delivering a surprise of 13.79%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Wheaton Precious Metals, which belongs to the Zacks Mining - Miscellaneous industry, posted revenues of $308.25 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 5.03%. This compares to year-ago revenues of $223.14 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Wheaton Precious Metals shares have added about 27.2% since the beginning of the year versus the S&P 500's gain of 24.3%.

What's Next for Wheaton Precious Metals?

While Wheaton Precious Metals has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Wheaton Precious Metals: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $356.83 million in revenues for the coming quarter and $1.44 on $1.29 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Miscellaneous is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Piedmont Lithium Inc. (PLL), has yet to report results for the quarter ended September 2024. The results are expected to be released on November 12.

This company is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of -152.3%. The consensus EPS estimate for the quarter has been revised 460% lower over the last 30 days to the current level.

Piedmont Lithium Inc.'s revenues are expected to be $32.91 million, down 30.2% from the year-ago quarter.

Zacks Investment Research

HudBay Minerals (HBM) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on November 13, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This mining company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -28.6%.

Revenues are expected to be $470.43 million, down 2.1% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 1.91% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for HudBay Minerals?

For HudBay Minerals, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.06%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that HudBay Minerals will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that HudBay Minerals would post earnings of $0.06 per share when it actually produced break-even earnings, delivering a surprise of -100%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

HudBay Minerals appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry Player

Piedmont Lithium Inc. (PLL), another stock in the Zacks Mining - Miscellaneous industry, is expected to report earnings per share of $0.46 for the quarter ended September 2024. This estimate points to a year-over-year change of -152.3%. Revenues for the quarter are expected to be $32.91 million, down 30.2% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Piedmont Lithium has been revised 460% down to the current level. Nevertheless, the company now has an Earnings ESP of -3.62%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Piedmont Lithium will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Zacks Investment Research

As Election Week 2024 is upon us, Wall Street is geared up for sector-specific shakeups, with JPMorgan's Bill Peterson spotlighting a decisive split in potential stock moves.

With a Democratic win likely to power up the clean energy sector and a Donald Trump victory poised to boost steel, the stakes are high for investors in metals, mining and clean tech.

A Harris Win: Green Light For Clean Tech Rally?

Should Vice-President Kamala Harris take the White House, expect a boost across clean tech stocks, especially those linked to electric vehicles (EV) and hydrogen.

Peterson points to EVgo Inc , ChargePoint Holdings Inc and lithium players like Lithium Americas Corp and Piedmont Lithium Inc as likely to benefit from sustained clean energy initiatives.

Stocks like Plug Power Inc could also rally, riding on investor confidence that government spending won't dry up for sectors heavily backed by the Inflation Reduction Act and the Department of Energy's Loan Programs Office.

Read Also: Donald Trump’s Return To White House Could Propel These ETFs To New Highs

Trump's Win: Steel's Comeback With A Dose Of Protectionism

A Trump victory could be a bullish setup for the steel sector, especially for domestic players like Nucor Corp , Steel Dynamics Inc , and Cleveland-Cliffs Inc , which would benefit from protectionist policies supporting U.S. steel pricing.

Peterson highlights that Trump's stance against the proposed acquisition of U.S. Steel by Nippon Steel Corp could keep the spotlight on domestic operators, while Trade Expansion Act Section 232 tariffs could make U.S. steel prices attractive.

Kaiser Aluminum Corp stands to gain over Constellium SE if more tariffs come into play, thanks to Kaiser’s U.S. footprint.

Rare Earths & Base Metals: Supply Security Takes The Stage

Regardless of the outcome, Western supply chain security remains a hot-button issue, favorably positioning rare earth and graphite players like MP Materials Corp and GrafTech International Ltd .

For base metals, names like Alcoa Corp and Freeport-McMoRan Inc may see an impact from intensified China tariffs, with pricing ripple effects dependent on global stimulus responses.

With the election outcome set to shape market dynamics, these sectors have distinct paths forward. For now, it's a wait-and-see game for investors in metals, mining, and clean tech.

Read Next:

• Harris Vs Trump: Crypto Industry Anticipates ‘Favorable Regulatory Environment’ For Bitcoin And Other Digital Assets After Elections

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