Yahoo Finance Copper Mountain Mining Corporation (TSE:CMMC) Analysts Are Reducing Their Forecasts For This Year
The latest analyst coverage could presage a bad day for Copper Mountain Mining Corporation (TSE:CMMC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the current consensus from Copper Mountain Mining's nine analysts is for revenues of CA$264m in 2020 which - if met - would reflect a modest 5.1% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 72% to CA$0.10. Previously, the analysts had been modelling revenues of CA$334m and earnings per share (EPS) of CA$0.36 in 2020. There looks to have been a major change in sentiment regarding Copper Mountain Mining's prospects, with a sizeable cut to revenues and the analysts now forecasting a loss instead of a profit.
Check out our latest analysis for Copper Mountain Mining
There was no major change to the consensus price target of CA$0.76, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Copper Mountain Mining at CA$1.00 per share, while the most bearish prices it at CA$0.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Copper Mountain Mining'sgrowth to accelerate, with the forecast 5.1% growth ranking favourably alongside historical growth of 3.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.0% next year. So it's clear that despite the acceleration in growth, Copper Mountain Mining is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that analysts are expecting Copper Mountain Mining to become unprofitable this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Copper Mountain Mining's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Copper Mountain Mining.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Copper Mountain Mining going out to 2024, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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