Earnings Beat: 5N Plus Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Explore 5N Plus's Fair Values from the Community and select yours

5N Plus Inc. (TSE:VNP) just released its latest second-quarter results and things are looking bullish. 5N Plus delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$95m-10% above indicated-andUS$0.17-70% above forecasts- respectively Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from 5N Plus' five analysts is for revenues of US$368.6m in 2025. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 23% to US$0.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$340.6m and earnings per share (EPS) of US$0.34 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a massive increase in earnings per share in particular.

See our latest analysis for 5N Plus

It will come as no surprise to learn that the analysts have increased their price target for 5N Plus 51% to CA$18.45on the back of these upgrades. 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. Currently, the most bullish analyst values 5N Plus at CA$19.94 per share, while the most bearish prices it at CA$16.95. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 5N Plus' growth to accelerate, with the forecast 22% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% 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 3.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that 5N Plus is expected to grow much faster than its industry.

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 5N Plus following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple 5N Plus analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for 5N Plus you should know about.

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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.