Yahoo Finance Andrada Mining Limited (LON:ATM) Just Reported Earnings, And Analysts Cut Their Target Price
As you might know, Andrada Mining Limited (LON:ATM) recently reported its half-yearly numbers. Revenues were UK£8.8m, with Andrada Mining reporting some 3.8% below analyst expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Andrada Mining
Taking into account the latest results, the most recent consensus for Andrada Mining from twin analysts is for revenues of UK£22.2m in 2024. If met, it would imply a substantial 59% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 43% to UK£0.0028. Before this latest report, the consensus had been expecting revenues of UK£22.2m and UK£0.0036 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very promising decrease in losses per share in particular.
The consensus price target fell 9.4% to UK£0.24despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Andrada Mining's growth to accelerate, with the forecast 153% annualised growth to the end of 2024 ranking favourably alongside historical growth of 57% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Andrada Mining is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Andrada Mining you should know about.
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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.
