Wednesday, August 11, 2010

Silver Wheaton's (NYSE:SLW) Record Earnings Still Miss Expectations

Silver Wheaton Corp. (NYSE:SLW) (TSE:SLW) had record earnings for the second quarter, but it wasn't enough to meet analysts' expectations.

Earnings were led by an increase in production and higher silver prices, which generated $53.3 million, or 15 cents a share. That was in contrast to last year in the same quarter where they earning $18.4 million, or 7 cents a share.

Analysts had been looking for earnings of 16 cents a share for the quarter.

Revenue more than doubled from $41.4 million last year in the same period to $95.0 million this year. Analysts had expected $94.28 million in revenue.

Silver Wheaton chief executive officer Peter Barnes, said, "In the face of continued global economic uncertainty, the price of silver performed very well in the quarter, leading to record cash operating margins of US$14.45 per ounce, and clearly demonstrating the advantages of Silver Wheaton's business model of low fixed operating costs."

Concerning guidance, Barnes reiterated, "With Goldcorp's Penasquito mine in Mexico, the first of our cornerstone assets, continuing to ramp up silver production ahead of schedule, we look forward to an even stronger second half to the year and maintain our annual attributable silver equivalent production guidance of 23.5 million ounces."

Silver Wheaton closed in New York at $19.20, losing $0.67, or 3.37 percent.

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