Titanium Transportation Group Inc. (TSE:TTNM) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Titanium Transportation Group Inc. (TSE:TTNM) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in at CA$115m, in line with forecasts and the company reported a statutory loss of CA$0.05 per share, roughly in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Titanium Transportation Group

Taking into account the latest results, Titanium Transportation Group's six analysts currently expect revenues in 2024 to be CA$453.6m, approximately in line with the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -CA$0.015 per share in 2024. Before this earnings report, the analysts had been forecasting revenues of CA$478.1m and earnings per share (EPS) of CA$0.017 in 2024. There looks to have been a significant drop in sentiment regarding Titanium Transportation Group's prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

The average price target fell 7.8% to CA$4.03, implicitly signalling that lower earnings per share are a leading indicator for Titanium Transportation Group's valuation. 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 Titanium Transportation Group at CA$4.60 per share, while the most bearish prices it at CA$3.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.8% by the end of 2024. This indicates a significant reduction from annual growth of 23% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Titanium Transportation Group is expected to lag the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Titanium Transportation Group dropped from profits to a loss next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Titanium Transportation Group's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Titanium Transportation Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Titanium Transportation Group going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with Titanium Transportation Group (at least 2 which are significant) , and understanding these should be part of your investment process.

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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.