Investors in Wesdome Gold Mines Ltd. (TSE:WDO) had a good week, as its shares rose 6.7% to close at CA$13.91 following the release of its quarterly results. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Wesdome Gold Mines
Taking into account the latest results, the current consensus from Wesdome Gold Mines’ five analysts is for revenues of CA$532.9m in 2024. This would reflect a major 33% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 205% to CA$0.80. Before this earnings report, the analysts had been forecasting revenues of CA$510.4m and earnings per share (EPS) of CA$0.84 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a major to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
There’s been no major changes to the price target of CA$14.55, suggesting that the impact of higher forecast revenue and lower earnings won’t result in a meaningful change to the business’ valuation. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Wesdome Gold Mines analyst has a price target of CA$18.00 per share, while the most pessimistic values it at CA$11.10. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Wesdome Gold Mines’ growth to accelerate, with the forecast 77% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Wesdome Gold Mines is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wesdome Gold Mines. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Wesdome Gold Mines analysts – going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Wesdome Gold Mines’ Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
