Yahoo Finance Earnings Update: Mincor Resources NL (ASX:MCR) Just Reported And Analysts Are Trimming Their Forecasts
Last week, you might have seen that Mincor Resources NL (ASX:MCR) released its full-year result to the market. The early response was not positive, with shares down 5.0% to AU$2.11 in the past week. Revenues of AU$32m beat expectations by a respectable 8.9%, although statutory losses per share increased. Mincor Resources lost AU$0.031, which was 460% more than what the analysts had included in their models. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Mincor Resources
After the latest results, the four analysts covering Mincor Resources are now predicting revenues of AU$259.7m in 2023. If met, this would reflect a substantial 702% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Mincor Resources forecast to report a statutory profit of AU$0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$276.7m and earnings per share (EPS) of AU$0.17 in 2023. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
The analysts made no major changes to their price target of AU$2.39, suggesting the downgrades are not expected to have a long-term impact on Mincor Resources' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Mincor Resources, with the most bullish analyst valuing it at AU$2.70 and the most bearish at AU$2.10 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mincor Resources' past performance and to peers in the same industry. The analysts are definitely expecting Mincor Resources' growth to accelerate, with the forecast 7x annualised growth to the end of 2023 ranking favourably alongside historical growth of 9.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.5% per year. So it's clear with the acceleration in growth, Mincor Resources is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mincor Resources. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target held steady at AU$2.39, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Mincor Resources going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Mincor Resources that we have uncovered.
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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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