First Resources Limited (SGX:EB5) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$1.0b, some 4.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.16, 22% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on First Resources after the latest results.
Taking into account the latest results, the current consensus from First Resources' six analysts is for revenues of US$1.06b in 2025. This would reflect an okay 2.1% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.05b and earnings per share (EPS) of US$0.13 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
There's been no real change to the consensus price target of S$1.73, with First Resources seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on First Resources, with the most bullish analyst valuing it at S$2.01 and the most bearish at S$1.49 per share. 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 First Resources' revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that First Resources is also expected to grow slower than other industry participants.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that First Resources' revenue is expected to perform worse 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.
We have estimates for First Resources from its six analysts out to 2027, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for First Resources (1 is concerning!) that you need to take into consideration.
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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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