Yahoo Finance Dundee Precious Metals Inc. (TSE:DPM) Just Beat Earnings: Here's What Analysts Think Will Happen Next
A week ago, Dundee Precious Metals Inc. (TSE:DPM) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Statutory earnings performance was extremely strong, with revenue of US$158m beating expectations by 38% and earnings per share (EPS) of US$0.25, an impressive 32%ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Dundee Precious Metals
Taking into account the latest results, the current consensus from Dundee Precious Metals' two analysts is for revenues of US$581.3m in 2024. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 15% to US$0.83 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$543.9m and earnings per share (EPS) of US$1.03 in 2024. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
The consensus price target was unchanged at CA$14.00, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.
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. It's clear from the latest estimates that Dundee Precious Metals' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dundee Precious Metals to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Dundee Precious Metals has 2 warning signs (and 1 which is significant) we think 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.
