Yahoo Finance Wesdome Gold Mines Ltd. (TSE:WDO) Just Released Its Annual Earnings: Here's What Analysts Think
Wesdome Gold Mines Ltd. (TSE:WDO) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of CA$215m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CA$0.36, missing estimates by 4.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wesdome Gold Mines after the latest results.
Check out our latest analysis for Wesdome Gold Mines
Taking into account the latest results, the consensus forecast from Wesdome Gold Mines' four analysts is for revenues of CA$284.5m in 2021, which would reflect a major 32% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 32% to CA$0.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$284.5m and earnings per share (EPS) of CA$0.48 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of CA$15.02, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Wesdome Gold Mines, with the most bullish analyst valuing it at CA$18.00 and the most bearish at CA$12.50 per share. 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 Wesdome Gold Mines shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Wesdome Gold Mines' growth to accelerate, with the forecast 32% annualised growth to the end of 2021 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Wesdome Gold Mines is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Wesdome Gold Mines going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Wesdome Gold Mines you should know about.
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.
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