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Major Drilling Group International Inc. (TSE:MDI) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to CA$8.00 in the week after its latest quarterly results. Revenues of CA$161m beat expectations by a respectable 5.3%, although statutory losses per share increased. Major Drilling Group International lost CA$0.11, which was 450% more than what the analysts had included in their models. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Major Drilling Group International after the latest results.
See our latest analysis for Major Drilling Group International
Taking into account the latest results, the consensus forecast from Major Drilling Group International's four analysts is for revenues of CA$875.9m in 2026. This reflects a sizeable 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 107% to CA$0.88. Before this earnings report, the analysts had been forecasting revenues of CA$874.1m and earnings per share (EPS) of CA$0.94 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at CA$13.75, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Major Drilling Group International at CA$17.00 per share, while the most bearish prices it at CA$11.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Major Drilling Group International's growth to accelerate, with the forecast 19% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Major Drilling Group International is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.