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Earnings Update: Wesdome Gold Mines Ltd. (TSE:WDO) Just Reported And Analysts Are Boosting Their Estimates

It's been a pretty great week for Wesdome Gold Mines Ltd. (TSE:WDO) shareholders, with its shares surging 15% to CA$11.51 in the week since its latest first-quarter results. The analysts 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 estimates to see what could be in store for next year.

View our latest analysis for Wesdome Gold Mines

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Taking into account the latest results, the consensus forecast from Wesdome Gold Mines' six analysts is for revenues of CA$490.7m in 2024. This reflects a major 37% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 1,836% to CA$0.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$462.4m and earnings per share (EPS) of CA$0.58 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

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Despite these upgrades,the analysts have not made any major changes to their price target of CA$12.16, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Wesdome Gold Mines at CA$14.25 per share, while the most bearish prices it at CA$9.65. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 53% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Wesdome Gold Mines' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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. At Simply Wall St, we have a full range of analyst estimates for Wesdome Gold Mines going out to 2025, and you can see them free on our platform here..

We also provide an overview of the Wesdome Gold Mines Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.