Sylvania Platinum Limited (LON:SLP) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Sylvania Platinum Limited (LON:SLP) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of US$104m were in line with what the analysts predicted, Sylvania Platinum surprised by delivering a statutory profit of US$0.077 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Sylvania Platinum's three analysts are now forecasting revenues of US$153.8m in 2026. This would be a major 48% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 95% to US$0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$160.4m and earnings per share (EPS) of US$0.15 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

See our latest analysis for Sylvania Platinum

The average price target was steady at UK£0.87even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sylvania Platinum analyst has a price target of UK£0.90 per share, while the most pessimistic values it at UK£0.84. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sylvania Platinum is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Sylvania Platinum's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 48% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 13% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.6% annually. So it looks like Sylvania Platinum is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Sylvania Platinum's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sylvania Platinum going out to 2028, and you can see them free on our platform here.

Even so, be aware that Sylvania Platinum is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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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.