Results: 5N Plus Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, 5N Plus Inc. (TSE:VNP) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 9.7% to hit US$79m. 5N Plus also reported a statutory profit of US$0.07, which was an impressive 40% above what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for 5N Plus

Taking into account the latest results, the consensus forecast from 5N Plus' four analysts is for revenues of US$318.3m in 2025. This reflects a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 62% to US$0.29. In the lead-up to this report, the analysts had been modelling revenues of US$313.5m and earnings per share (EPS) of US$0.26 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.

The consensus price target rose 6.0% to CA$9.05, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values 5N Plus at CA$9.81 per share, while the most bearish prices it at CA$8.53. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting 5N Plus is an easy business to forecast or the the analysts are all using similar assumptions.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.7% growth on an annualised basis. That is in line with its 8.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.8% annually. So although 5N Plus is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 estimates - from multiple 5N Plus analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for 5N Plus (1 is significant!) that you need to be mindful of.

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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.