It's been a pretty great week for GURU Organic Energy Corp. (TSE:GURU) shareholders, with its shares surging 15% to CA$2.60 in the week since its latest quarterly results. Revenue of CA$7.1m came in 4.1% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of CA$0.06, a 20% miss. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for GURU Organic Energy
Following the latest results, GURU Organic Energy's three analysts are now forecasting revenues of CA$34.4m in 2024. This would be a decent 9.3% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 18% from last year to CA$0.30. Before this latest report, the consensus had been expecting revenues of CA$34.2m and CA$0.29 per share in losses. So it's pretty clear consensus is mixed on GURU Organic Energy after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.
As a result, there was no major change to the consensus price target of CA$4.08, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 GURU Organic Energy at CA$5.75 per share, while the most bearish prices it at CA$3.00. 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. It's clear from the latest estimates that GURU Organic Energy's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.6% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect GURU Organic Energy to grow faster than the wider industry.