Calibre Mining Corp. (TSE:CXB) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Calibre Mining Corp. (TSE:CXB) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.3% to CA$2.03. It was a workmanlike result, with revenues of US$138m coming in 3.1% ahead of expectations, and statutory earnings per share of US$0.18, in line with analyst appraisals. The 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Calibre Mining

Taking into account the latest results, the current consensus from Calibre Mining's six analysts is for revenues of US$639.8m in 2024. This would reflect a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 103% to US$0.14. In the lead-up to this report, the analysts had been modelling revenues of US$629.8m and earnings per share (EPS) of US$0.11 in 2024. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at CA$2.98, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Calibre Mining, with the most bullish analyst valuing it at CA$4.00 and the most bearish at CA$2.50 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that Calibre Mining's revenue growth is expected to slow, with the forecast 28% annualised growth rate until the end of 2024 being well below the historical 36% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Calibre Mining's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Calibre Mining following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Calibre Mining. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Calibre Mining analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Calibre Mining has 2 warning signs (and 1 which makes us a bit uncomfortable) 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.