It's been a good week for Blackline Safety Corp. (CVE:BLN) shareholders, because the company has just released its latest annual results, and the shares gained 8.1% to CA$7.10. The results were positive, with revenue coming in at CA$33m, beating analyst expectations by 6.3%. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Blackline Safety's dual analysts is for revenues of CA$56.0m in 2020, which would reflect a huge 68% increase on its sales over the past 12 months. Before this earnings result, analysts had predicted CA$55.3m revenue in 2020, although there was no accompanying EPS estimate. Overall it looks like Blackline Safety is performing in line with analyst expectations, given analysts have updated their numbers and there's been no real change to next year's forecast following these results.
The average analyst price target rose 13% to CA$9.92, with analysts clearly having become more optimistic about Blackline Safety's prospects following these results.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Analysts are definitely expecting Blackline Safety's growth to accelerate, with the forecast 68% growth ranking favourably alongside historical growth of 36% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 18% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Blackline Safety is expected to grow much faster than its market.
The Bottom Line
The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
We have estimates for Blackline Safety from its dual analysts , and you can see them free on our platform here.
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