Big River Industries Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders might have noticed that Big River Industries Limited (ASX:BRI) filed its interim result this time last week. The early response was not positive, with shares down 7.4% to AU$1.88 in the past week. It looks like the results were a bit of a negative overall. While revenues of AU$219m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.6% to hit AU$0.085 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Big River Industries
Taking into account the latest results, Big River Industries' twin analysts currently expect revenues in 2024 to be AU$433.4m, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 17% to AU$0.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of AU$433.5m and earnings per share (EPS) of AU$0.16 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of AU$2.50, suggesting that the company has met expectations in its recent result.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Big River Industries is expected to lag the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Big River Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at AU$2.50, 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 analyst estimates for Big River Industries going out as far as 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Big River Industries 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.
