Big River Industries Limited (ASX:BRI) just released its latest full-year results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of AU$409m, some 4.1% above estimates, and statutory earnings per share (EPS) coming in at AU$0.26, 21% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Big River Industries from twin analysts is for revenues of AU$453.5m in 2023 which, if met, would be a solid 11% increase on its sales over the past 12 months. Statutory earnings per share are predicted to accumulate 6.8% to AU$0.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$414.8m and earnings per share (EPS) of AU$0.23 in 2023. So it seems there's been a definite increase in optimism about Big River Industries' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 39% to AU$3.36per share.
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. It's pretty clear that there is an expectation that Big River Industries' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.8% per year. Even after the forecast slowdown in growth, it seems obvious that Big River Industries is also expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Big River Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Big River Industries going out as far as 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Big River Industries that we have uncovered.
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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.
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