Stillwater Mining Earnings: Here’s Why Investors are Buying Shares Now

Stillwater Mining Co. (NYSE:SWC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.75%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Stillwater Mining Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 500% to $0.12 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 23.44% to $250.65 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stillwater Mining Co. reported adjusted EPS income of $0.12 per share. By that measure, the company beat the mean analyst estimate of $0.04. It beat the average revenue estimate of $224 million.

Quoting Management: Commenting on the Company’s 2013 first quarter results, Frank McAllister, the Company’s Chairman and Chief Executive Officer, stated, “The first quarter of 2013 has provided an excellent start to the year for Stillwater Mining. Production from our Montana mines exceeded plan with a run rate ahead of our 500,000 ounce annual guidance, recycling volumes for the quarter set a new Company record, total cash costs per ounce were lower than our guidance, and our teams continue to be on track at our three Montana growth projects. Overall, the Company’s operations are better positioned than ever before in its 26 year operating history. In addition to operational strength, the Company is on firm financial footing, with liquidity sufficient to ensure we will be able to fund our PGM growth projects and should withstand any short-term volatility in PGM prices. Despite a drop in most metal prices during early April, the fundamentals for palladium remain robust. Demand for this precious metal continues to grow in the face of some severe supply constraints, and Stillwater is in an enviable position to benefit from these fundamentals.”

Key Stats (on next page)…

Revenue increased 23.25% from $203.37 million in the previous quarter. EPS decreased 0% from $0.12 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.09 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.46 to a profit of $0.4 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet