Analysts Have Made A Financial Statement On Wesdome Gold Mines Ltd.'s (TSE:WDO) Second-Quarter Report

Investors in Wesdome Gold Mines Ltd. (TSE:WDO) had a good week, as its shares rose 6.7% to close at CA$13.91 following the release of its quarterly results. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wesdome Gold Mines after the latest results.

See our latest analysis for Wesdome Gold Mines

After the latest results, the six analysts covering Wesdome Gold Mines are now predicting revenues of CA$538.9m in 2024. If met, this would reflect a huge 35% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 227% to CA$0.85. Before this earnings report, the analysts had been forecasting revenues of CA$510.4m and earnings per share (EPS) of CA$0.84 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CA$14.54, implying that the uplift in revenue is not expected to greatly contribute to Wesdome Gold Mines's valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Wesdome Gold Mines, with the most bullish analyst valuing it at CA$18.00 and the most bearish at CA$11.10 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Wesdome Gold Mines shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wesdome Gold Mines' past performance and to peers in the same industry. The analysts are definitely expecting Wesdome Gold Mines' growth to accelerate, with the forecast 81% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Wesdome Gold Mines is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$14.54, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wesdome Gold Mines. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wesdome Gold Mines analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.