Yahoo Finance Analysts Just Shaved Their Touchstone Exploration Inc. (TSE:TXP) Forecasts Dramatically
Today is shaping up negative for Touchstone Exploration Inc. (TSE:TXP) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
After the downgrade, the three analysts covering Touchstone Exploration are now predicting revenues of US$41m in 2022. If met, this would reflect a major 60% improvement in sales compared to the last 12 months. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of US$0.0072 per share in 2022. Previously, the analysts had been modelling revenues of US$48m and earnings per share (EPS) of US$0.016 in 2022. There looks to have been a major change in sentiment regarding Touchstone Exploration's prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.
View our latest analysis for Touchstone Exploration
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. For example, we noticed that Touchstone Exploration's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 156% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 0.9% per year. So it looks like Touchstone Exploration is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest low-light for us was that the forecasts for Touchstone Exploration dropped from profits to a loss this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Touchstone Exploration, and their negativity could be grounds for caution.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Touchstone Exploration analysts - going out to 2023, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
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