Yahoo Finance Altius Minerals Corporation (TSE:ALS) Just Reported Full-Year Earnings And Analysts Are Lifting Their Estimates
Shareholders of Altius Minerals Corporation (TSE:ALS) will be pleased this week, given that the stock price is up 16% to CA$16.73 following its latest full-year results. It was a respectable set of results; while revenues of CA$60m were in line with analyst predictions, statutory losses were 19% smaller than expected, with Altius Minerals losing CA$0.65 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Altius Minerals
Following the latest results, Altius Minerals' three analysts are now forecasting revenues of CA$75.7m in 2021. This would be a huge 26% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Altius Minerals forecast to report a statutory profit of CA$0.48 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$70.8m and earnings per share (EPS) of CA$0.44 in 2021. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Despite these upgrades,the analysts have not made any major changes to their price target of CA$18.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Altius Minerals at CA$20.00 per share, while the most bearish prices it at CA$16.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 28% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.3% per year. So it's pretty clear that Altius Minerals is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Altius Minerals' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at CA$18.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Altius Minerals going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Altius Minerals .
This article by Simply Wall St is general in nature. 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.
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