Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Sociedad Química y Minera de Chile S.A. (NYSE:SQM) After Its First-Quarter Report
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) just released its latest first-quarter report and things are not looking great. It was a pretty negative result overall, with revenues of US$1.1b missing analyst predictions by 4.7%. Worse, the business reported a statutory loss of US$3.04 per share, much larger than the analysts had forecast prior to the result. 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 Sociedad Química y Minera de Chile
Taking into account the latest results, the current consensus, from the 16 analysts covering Sociedad Química y Minera de Chile, is for revenues of US$5.32b in 2024. This implies an uneasy 15% reduction in Sociedad Química y Minera de Chile's revenue over the past 12 months. Per-share earnings are expected to soar 250% to US$4.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.28b and earnings per share (EPS) of US$5.13 in 2024. 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 analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$66.53, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Sociedad Química y Minera de Chile analyst has a price target of US$95.00 per share, while the most pessimistic values it at US$45.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 20% annualised decline to the end of 2024. That is a notable change from historical growth of 39% 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 8.0% per year. It's pretty clear that Sociedad Química y Minera de Chile's 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$66.53, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sociedad Química y Minera de Chile analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Sociedad Química y Minera de Chile has 3 warning signs (and 1 which is a bit concerning) we think you should know about.
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.
