Bathurst Resources Limited (ASX:BRL) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Bathurst Resources Limited (ASX:BRL) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenue crushed expectations at NZ$21m, beating expectations by 50%. Bathurst Resources reported a statutory loss of NZ$0.019 per share, which - although not amazing - was much smaller than the analyst predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the recent earnings report, the consensus from one analyst covering Bathurst Resources is for revenues of NZ$18.3m in 2027. This implies a considerable 12% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 53% to NZ$0.009. Yet prior to the latest earnings, the analyst had been forecasting revenues of NZ$14.7m and losses of NZ$0.024 per share in 2027. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Bathurst Resources

The consensus price target fell 7.1%, to AU$0.78, suggesting that the analyst remain pessimistic on the company, despite the improved earnings and revenue outlook.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Over the past five years, revenues have declined around 7.2% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 12% decline in revenue until the end of 2027. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.2% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Bathurst Resources to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Bathurst Resources going out as far as 2029, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Bathurst Resources that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.