Yahoo Finance Central Asia Metals plc Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a good week for Central Asia Metals plc (LON:CAML) shareholders, because the company has just released its latest yearly results, and the shares gained 3.1% to UK£2.53. Revenues of US$160m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.24, missing estimates by 5.1%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Central Asia Metals
Taking into account the latest results, the consensus forecast from Central Asia Metals' six analysts is for revenues of US$189.0m in 2021, which would reflect a notable 18% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 57% to US$0.39. In the lead-up to this report, the analysts had been modelling revenues of US$191.8m and earnings per share (EPS) of US$0.39 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$4.02, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Central Asia Metals at US$3.25 per share, while the most bearish prices it at US$2.19. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Central Asia Metals is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.6% annually. So although Central Asia Metals is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Central Asia Metals analysts - going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Central Asia Metals that you need to take into consideration.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
