U.S. markets closed
  • S&P 500

    4,354.19
    -3.54 (-0.08%)
     
  • Dow 30

    33,919.84
    -50.63 (-0.15%)
     
  • Nasdaq

    14,746.40
    +32.49 (+0.22%)
     
  • Russell 2000

    2,186.18
    +3.98 (+0.18%)
     
  • Crude Oil

    70.51
    +0.22 (+0.31%)
     
  • Gold

    1,775.30
    -2.90 (-0.16%)
     
  • Silver

    22.50
    -0.12 (-0.51%)
     
  • EUR/USD

    1.1732
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    1.3240
    +0.0150 (+1.15%)
     
  • GBP/USD

    1.3664
    +0.0005 (+0.03%)
     
  • USD/JPY

    109.2190
    -0.2010 (-0.18%)
     
  • BTC-USD

    41,468.72
    -2,245.12 (-5.14%)
     
  • CMC Crypto 200

    1,016.33
    -47.52 (-4.47%)
     
  • FTSE 100

    6,980.98
    +77.07 (+1.12%)
     
  • Nikkei 225

    29,839.71
    -660.34 (-2.17%)
     

GFL Environmental Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

It's been a good week for GFL Environmental Inc. (TSE:GFL) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.8% to CA$43.46. It was overall a positive result, with revenues beating expectations by 2.2% to hit CA$1.3b. GFL Environmental also reported a statutory profit of CA$0.03, which was a nice improvement from the loss that the analysts were predicting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GFL Environmental after the latest results.

Check out our latest analysis for GFL Environmental

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for GFL Environmental from ten analysts is for revenues of CA$5.26b in 2021 which, if met, would be a notable 10% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 61% to CA$0.96. Before this earnings announcement, the analysts had been modelling revenues of CA$5.19b and losses of CA$1.01 per share in 2021. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The average price target held steady at CA$42.94, seeming to indicate that business is performing in line with expectations. 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 GFL Environmental analyst has a price target of CA$47.00 per share, while the most pessimistic values it at CA$22.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 GFL Environmental's revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2021 being well below the historical 28% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% annually. So it's pretty clear that, while GFL Environmental's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for GFL Environmental going out to 2023, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with GFL Environmental .

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.