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As you might know, First Resources Limited (SGX:EB5) recently reported its yearly numbers. First Resources reported US$1.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.21 beat expectations, being 4.5% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for First Resources
Following the recent earnings report, the consensus from ten analysts covering First Resources is for revenues of US$1.06b in 2023, implying a not inconsiderable 14% decline in sales compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.06b and earnings per share (EPS) of US$0.14 in 2023. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate, suggesting 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$1.80, with First Resources seemingly executing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic First Resources analyst has a price target of S$2.53 per share, while the most pessimistic values it at S$1.30. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 sales are expected to reverse, with a forecast 14% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.6% annually for the foreseeable future. It's pretty clear that First Resources' revenues are expected to perform substantially worse than the wider industry.