Analysts Have Just Cut Their Fortuna Mining Corp. (TSE:FVI) Revenue Estimates By 11%

Today is shaping up negative for Fortuna Mining Corp. (TSE:FVI) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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Following the latest downgrade, the current consensus, from the three analysts covering Fortuna Mining, is for revenues of US$914m in 2025, which would reflect a stressful 21% reduction in Fortuna Mining's sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.0b of revenue in 2025. The consensus view seems to have become more pessimistic on Fortuna Mining, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Fortuna Mining

There was no particular change to the consensus price target of US$6.55, with Fortuna Mining's latest outlook seemingly not enough to result in a change of 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. There are some variant perceptions on Fortuna Mining, with the most bullish analyst valuing it at US$7.24 and the most bearish at US$5.04 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fortuna Mining's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 26% by the end of 2025. This indicates a significant reduction from annual growth of 27% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. It's pretty clear that Fortuna Mining's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Fortuna Mining this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Fortuna Mining going forwards.

Thirsting for more data? We have estimates for Fortuna Mining from its three analysts out until 2027, and you can see them free on our platform here.

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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.