Time To Worry? Analysts Just Downgraded Their Victoria Gold Corp. (TSE:VGCX) Outlook

Today is shaping up negative for Victoria Gold Corp. (TSE:VGCX) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Victoria Gold's dual analysts are now forecasting revenues of CA$379m in 2022. This would be a modest 6.3% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$438m in 2022. It looks like forecasts have become a fair bit less optimistic on Victoria Gold, given the measurable cut to revenue estimates.

Check out our latest analysis for Victoria Gold

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Victoria Gold's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 91% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Victoria Gold is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Victoria Gold after today.

Thirsting for more data? We have estimates for Victoria Gold from its dual analysts out until 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 downgrading 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.