Yahoo Finance Sylvania Platinum Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Last week, you might have seen that Sylvania Platinum Limited (LON:SLP) released its annual result to the market. The early response was not positive, with shares down 7.0% to UK£0.61 in the past week. It was not a great result overall. Although revenues beat expectations, hitting US$114m, statutory earnings missed analyst forecasts by 12%, coming in at just US$0.14 per share. The analyst 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
View our latest analysis for Sylvania Platinum
Taking into account the latest results, the current consensus from Sylvania Platinum's lone analyst is for revenues of US$138.1m in 2021, which would reflect a substantial 21% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 86% to US$0.23. Before this earnings report, the analyst had been forecasting revenues of US$136.7m and earnings per share (EPS) of US$0.24 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a minor downgrade to their earnings per share forecasts.
Despite cutting their earnings forecasts,the analyst has lifted their price target 9.3% to AU$2.10, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sylvania Platinum's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Sylvania Platinum'shistorical trends, as next year's 21% revenue growth is roughly in line with 21% annual revenue growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% next year. So although Sylvania Platinum is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sylvania Platinum. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Sylvania Platinum. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Sylvania Platinum that you should be aware of.
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@simplywallst.com.
