Hudbay Minerals Inc. Just Beat EPS By 54%: Here's What Analysts Think Will Happen Next

As you might know, Hudbay Minerals Inc. (TSE:HBM) just kicked off its latest quarterly results with some very strong numbers. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 14% higher than the analysts had forecast, at US$595m, while EPS were US$0.25 beating analyst models by 54%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Hudbay Minerals from ten analysts is for revenues of US$2.21b in 2025. If met, it would imply a credible 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 89% to US$0.74. In the lead-up to this report, the analysts had been modelling revenues of US$2.11b and earnings per share (EPS) of US$0.56 in 2025. So it seems there's been a definite increase in optimism about Hudbay Minerals' future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

Check out our latest analysis for Hudbay Minerals

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of CA$14.64, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hudbay Minerals analyst has a price target of CA$17.06 per share, while the most pessimistic values it at CA$11.99. 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 Hudbay Minerals' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Hudbay Minerals' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 13% 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 14% 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 Hudbay Minerals.

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 Hudbay Minerals following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hudbay Minerals analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Hudbay Minerals is carrying too much debt, and whether its balance sheet is healthy, for 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.