Yahoo Finance Kenmare Resources plc (LON:KMR) Just Released Its Annual Earnings: Here's What Analysts Think
It's been a good week for Kenmare Resources plc (LON:KMR) shareholders, because the company has just released its latest yearly results, and the shares gained 8.7% to UK£3.55. Results were roughly in line with estimates, with revenues of US$458m and statutory earnings per share of US$1.37. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Kenmare Resources
Taking into account the latest results, the current consensus, from the three analysts covering Kenmare Resources, is for revenues of US$432.7m in 2024. This implies a perceptible 5.6% reduction in Kenmare Resources' revenue over the past 12 months. Statutory earnings per share are expected to nosedive 51% to US$0.72 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$432.7m and earnings per share (EPS) of US$0.74 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at UK£5.95, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kenmare Resources at UK£8.56 per share, while the most bearish prices it at UK£4.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kenmare Resources' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.6% by the end of 2024. This indicates a significant reduction from annual growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.2% per year. It's pretty clear that Kenmare Resources' revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kenmare Resources' revenue is expected to perform worse 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Kenmare Resources. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Kenmare Resources going out to 2026, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Kenmare Resources (of which 1 doesn't sit too well with us!) you should know about.
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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.
