Earnings Update: GURU Organic Energy Corp. (TSE:GURU) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

There's been a notable change in appetite for GURU Organic Energy Corp. (TSE:GURU) shares in the week since its full-year report, with the stock down 14% to CA$2.46. Revenues came in at CA$29m, in line with forecasts and the company reported a statutory loss of CA$0.38 per share, roughly in line with 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for GURU Organic Energy

Taking into account the latest results, the consensus forecast from GURU Organic Energy's three analysts is for revenues of CA$34.2m in 2024. This reflects a decent 17% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 27% to CA$0.29. Yet prior to the latest earnings, the analysts had been forecasting revenues of CA$34.1m and losses of CA$0.33 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.

There's been no major changes to the consensus price target of CA$4.08, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values GURU Organic Energy at CA$5.75 per share, while the most bearish prices it at CA$3.00. 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.

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 GURU Organic Energy's 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 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that GURU Organic Energy is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for GURU Organic Energy going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for GURU Organic Energy 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.