Yahoo Finance Major Drilling Group International Inc. Just Released Its Third-Quarter Earnings: Here's What Analysts Think
There's been a notable change in appetite for Major Drilling Group International Inc. (TSE:MDI) shares in the week since its quarterly report, with the stock down 12% to CA$4.62. The result was fairly weak overall, with revenues of CA$82m being 8.4% less than what analysts had been modelling. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Major Drilling Group International
Following the latest results, Major Drilling Group International's four analysts are now forecasting revenues of CA$492.5m in 2021. This would be a meaningful 17% improvement in sales compared to the last 12 months. Before this earnings result, analysts had predicted CA$501.9m revenue in 2021, although there was no accompanying EPS estimate. From what we can see of these results, it looks like Major Drilling Group International is performing in line with analyst expectations. The analysts we track have all updated their numbers following the results, and there were no major changes to their forecasts for next year.
There's been no real change to the consensus price target of CA$7.85, with Major Drilling Group Internationalseemingly executing in line with expectations. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Major Drilling Group International at CA$9.00 per share, while the most bearish prices it at CA$6.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Analysts are definitely expecting Major Drilling Group International's growth to accelerate, with the forecast 17% growth ranking favourably alongside historical growth of 7.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Major Drilling Group International to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Major Drilling Group International's revenues are expected to grow faster than the wider market. 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.
At least one of Major Drilling Group International's four analysts has provided estimates out to 2021, which can be seen for free on our platform here.
We also provide an overview of the Major Drilling Group International Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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