Endeavour Mining plc (TSE:EDV) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Endeavour Mining plc (TSE:EDV) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.0%to hit US$728m. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Endeavour Mining

Taking into account the latest results, the consensus forecast from Endeavour Mining's ten analysts is for revenues of US$3.38b in 2025. This reflects a substantial 46% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Endeavour Mining forecast to report a statutory profit of US$3.35 per share. Before this earnings report, the analysts had been forecasting revenues of US$3.36b and earnings per share (EPS) of US$2.83 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

The consensus price target was unchanged at CA$43.69, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Endeavour Mining at CA$56.00 per share, while the most bearish prices it at CA$36.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Endeavour Mining shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Endeavour Mining's past performance and to peers in the same industry. The analysts are definitely expecting Endeavour Mining's growth to accelerate, with the forecast 35% annualised growth to the end of 2025 ranking favourably alongside historical growth of 16% 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Endeavour Mining to grow faster than the wider industry.

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 Endeavour 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.

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 Endeavour Mining going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Endeavour Mining (1 shouldn't be ignored) you should be aware of.

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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.