K92 Mining Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders of K92 Mining Inc. (TSE:KNT) will be pleased this week, given that the stock price is up 16% to CA$11.99 following its latest yearly results. K92 Mining reported US$351m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.46 beat expectations, being 7.9% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for K92 Mining

Taking into account the latest results, the most recent consensus for K92 Mining from eight analysts is for revenues of US$426.8m in 2025. If met, it would imply a major 22% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.4% to US$0.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$436.1m and earnings per share (EPS) of US$0.50 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

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The analysts have also increased their price target 5.8% to CA$14.73, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on K92 Mining's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on K92 Mining, with the most bullish analyst valuing it at CA$18.00 and the most bearish at CA$11.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting K92 Mining's growth to accelerate, with the forecast 22% annualised growth to the end of 2025 ranking favourably alongside historical growth of 18% 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect K92 Mining to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for K92 Mining going out to 2027, and you can see them free on our platform here.

Even so, be aware that K92 Mining is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.