Franco-Nevada Corporation Just Recorded A 15% EPS Beat: Here's What Analysts Are Forecasting Next

Explore Franco-Nevada's Fair Values from the Community and select yours

Investors in Franco-Nevada Corporation (TSE:FNV) had a good week, as its shares rose 4.9% to close at CA$247 following the release of its quarterly results. Revenues were US$369m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.28 were also better than expected, beating analyst predictions by 15%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Franco-Nevada's twelve analysts is for revenues of US$1.61b in 2025. This reflects a substantial 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 20% to US$4.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.56b and earnings per share (EPS) of US$4.60 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for Franco-Nevada

Despite these upgrades,the analysts have not made any major changes to their price target of CA$273, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Franco-Nevada, with the most bullish analyst valuing it at CA$315 and the most bearish at CA$256 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Franco-Nevada's growth to accelerate, with the forecast 48% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Franco-Nevada to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Franco-Nevada's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$273, with the latest estimates not enough to have an impact on their price targets.

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 Franco-Nevada going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Franco-Nevada that you need to take into consideration.

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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.