GoGold Resources Inc. (TSE:GGD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.
Following the upgrade, the current consensus from GoGold Resources’ three analysts is for revenues of US$51m in 2023 which – if met – would reflect a huge 41% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 750% to US$0.02. Previously, the analysts had been modelling revenues of US$46m and earnings per share (EPS) of US$0.021 in 2023. While revenue forecasts have increased, the analysts if anything seem a little more pessimistic, given the minor downgrade to earnings per share estimates in this update.
See our latest analysis for GoGold Resources
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GoGold Resources’ past performance and to peers in the same industry. The analysts are definitely expecting GoGold Resources’ growth to accelerate, with the forecast 41% annualised growth to the end of 2023 ranking favourably alongside historical growth of 21% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that GoGold Resources is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at GoGold Resources.
Still, the long-term prospects of the business are much more relevant than next year’s earnings. We have estimates – from multiple GoGold Resources analysts – going out to 2025, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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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