Green Impact Partners Inc. Just Missed Earnings - But Analysts Have Updated Their Models

Green Impact Partners Inc. (CVE:GIP) just released its latest full-year report and things are not looking great. Results showed a clear earnings miss, with CA$161m revenue coming in 5.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of CA$0.06 missed the mark badly, arriving some 72% below what was expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Green Impact Partners

Taking into account the latest results, the most recent consensus for Green Impact Partners from three analysts is for revenues of CA$172.4m in 2024. If met, it would imply a modest 7.0% increase on its revenue over the past 12 months. The company is forecast to report a statutory loss of CA$0.13 in 2024, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$199.5m and earnings per share (EPS) of CA$0.0067 in 2024. There looks to have been a major change in sentiment regarding Green Impact Partners' prospects following the latest results, with a real cut to revenues and the analysts now forecasting a loss instead of a profit.

The consensus price target fell 28% to CA$8.94, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Green Impact Partners analyst has a price target of CA$13.25 per share, while the most pessimistic values it at CA$4.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Green Impact Partners' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.0% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% per year. Even after the forecast slowdown in growth, it seems obvious that Green Impact Partners is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Green Impact Partners to become unprofitable next year. They also downgraded Green Impact Partners' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Green Impact Partners' future valuation.

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 Green Impact Partners going out to 2025, and you can see them free on our platform here..

Even so, be aware that Green Impact Partners is showing 4 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.