AMG Critical Materials N.V. (AMS:AMG) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders will be ecstatic, with their stake up 20% over the past week following AMG Critical Materials N.V.'s (AMS:AMG) latest quarterly results. The results were positive, with revenue coming in at US$388m, beating analyst expectations by 4.5%. 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.

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Following the latest results, AMG Critical Materials' four analysts are now forecasting revenues of US$1.68b in 2025. This would be a notable 14% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with AMG Critical Materials forecast to report a statutory profit of US$0.90 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.54b and earnings per share (EPS) of US$1.14 in 2025. So it's pretty clear the analysts have mixed opinions on AMG Critical Materials 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.

View our latest analysis for AMG Critical Materials

There's been no major changes to the price target of €21.11, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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 AMG Critical Materials analyst has a price target of €25.05 per share, while the most pessimistic values it at €15.87. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AMG Critical Materials shareholders.

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 clear from the latest estimates that AMG Critical Materials' rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that AMG Critical Materials is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AMG Critical Materials. 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 held steady at €21.11, 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. At Simply Wall St, we have a full range of analyst estimates for AMG Critical Materials going out to 2027, and you can see them 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 AMG Critical Materials 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.