News Flash: Analysts Just Made An Upgrade To Their GoGold Resources Inc. (TSE:GGD) Forecasts

Shareholders in GoGold Resources Inc. (TSE:GGD) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that GoGold Resources will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for GoGold Resources from its five analysts is for revenues of US$50m in 2022 which, if met, would be an okay 3.8% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 274% to US$0.03. Prior to this update, the analysts had been forecasting revenues of US$47m and earnings per share (EPS) of US$0.039 in 2022. While this year's revenue estimates increased, there was also a pretty serious decline to EPS expectations, suggesting the consensus has a bit of a mixed view on the stock.

See our latest analysis for GoGold Resources

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 pretty clear that there is an expectation that GoGold Resources' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GoGold Resources.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at GoGold Resources.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple GoGold Resources analysts - going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.