Analysts Just Made A Major Revision To Their Bear Creek Mining Corporation (CVE:BCM) Revenue Forecasts

Today is shaping up negative for Bear Creek Mining Corporation (CVE:BCM) 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.

Following the downgrade, the latest consensus from Bear Creek Mining's three analysts is for revenues of US$100m in 2023, which would reflect an okay 4.9% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$113m in 2023. It looks like forecasts have become a fair bit less optimistic on Bear Creek Mining, given the measurable cut to revenue estimates.

See our latest analysis for Bear Creek Mining

The consensus price target fell 7.1% to CA$1.30, with the analysts clearly less optimistic about Bear Creek Mining's valuation following this update.

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. It's pretty clear that there is an expectation that Bear Creek Mining's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 10.0% growth on an annualised basis. This is compared to a historical growth rate of 96% 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 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Bear Creek Mining 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 also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Bear Creek Mining going forwards.

Hungry for more information? At least one of Bear Creek Mining's three analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.