Sylvania Platinum Limited Just Missed Earnings - But Analysts Have Updated Their Models

There's been a notable change in appetite for Sylvania Platinum Limited (LON:SLP) shares in the week since its annual report, with the stock down 19% to UK£0.43. Statutory earnings per share fell badly short of expectations, coming in at US$0.027, some 22% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$82m. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Sylvania Platinum

After the latest results, the twin analysts covering Sylvania Platinum are now predicting revenues of US$133.0m in 2025. If met, this would reflect a huge 63% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 274% to US$0.10. Before this earnings report, the analysts had been forecasting revenues of US$121.9m and earnings per share (EPS) of US$0.11 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a huge to revenue, the consensus also made a small dip in its earnings per share forecasts.

The consensus price target fell 20% to UK£0.69, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

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. The analysts are definitely expecting Sylvania Platinum's growth to accelerate, with the forecast 63% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sylvania Platinum 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sylvania Platinum's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Sylvania Platinum (1 is a bit concerning!) that you need to be mindful 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.