Analysts Have Lowered Expectations For Bear Creek Mining Corporation (CVE:BCM) After Its Latest Results

It's shaping up to be a tough period for Bear Creek Mining Corporation (CVE:BCM), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. It definitely looks like a negative result overall with revenues falling 17% short of analyst estimates at US$61m. Statutory losses were US$0.16 per share, 439% bigger 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Bear Creek Mining

Following the latest results, Bear Creek Mining's two analysts are now forecasting revenues of US$139.1m in 2023. This would be a substantial 128% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Bear Creek Mining forecast to report a statutory profit of US$0.05 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$150.6m and earnings per share (EPS) of US$0.52 in 2023. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The analysts made no major changes to their price target of CA$2.05, suggesting the downgrades are not expected to have a long-term impact on Bear Creek Mining's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Bear Creek Mining's growth to accelerate, with the forecast 128% annualised growth to the end of 2023 ranking favourably alongside historical growth of 103% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bear Creek Mining to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at CA$2.05, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Bear Creek Mining going out as far as 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Bear Creek Mining that you should be aware 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.