Shanta Gold Limited (LON:SHG) Yearly Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Shanta Gold Limited (LON:SHG) filed its full-year result this time last week. The early response was not positive, with shares down 7.3% to UK£0.12 in the past week. Revenues came in at US$114m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$0.0022 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Shanta Gold

Taking into account the latest results, the most recent consensus for Shanta Gold from twin analysts is for revenues of US$166.9m in 2023 which, if met, would be a substantial 46% increase on its sales over the past 12 months. Earnings are expected to improve, with Shanta Gold forecast to report a statutory profit of US$0.011 per share. Before this earnings report, the analysts had been forecasting revenues of US$158.3m and earnings per share (EPS) of US$0.015 in 2023. So it's pretty clear the analysts have mixed opinions on Shanta Gold after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.

There's been no major changes to the price target of UK£0.24, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation.

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. It's clear from the latest estimates that Shanta Gold's rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.3% annually. It seems obvious that as part of the brighter growth outlook, Shanta Gold is expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shanta Gold. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider industry. The consensus price target held steady at UK£0.24, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Shanta Gold going out as far as 2024, and you can see them free on our platform here.

It might also be worth considering whether Shanta Gold's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.