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Blackline Safety Corp. (TSE:BLN) just released its latest quarterly results and things are looking bullish. The results overall were pretty good, with revenues of CA$38m exceeding expectations and statutory losses coming in at justCA$0.01 per share, some 70% below what the analysts had forecast. 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.
See our latest analysis for Blackline Safety
Taking into account the latest results, the consensus forecast from Blackline Safety's seven analysts is for revenues of CA$160.6m in 2025. This reflects a solid 16% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 42% to CA$0.053. Before this latest report, the consensus had been expecting revenues of CA$158.0m and CA$0.04 per share in losses. So it's pretty clear the analysts have mixed opinions on Blackline Safety even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.
The consensus price target held steady at CA$8.86, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Blackline Safety, with the most bullish analyst valuing it at CA$10.00 and the most bearish at CA$7.50 per share. This is a very narrow spread of estimates, implying either that Blackline Safety is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 Blackline Safety's revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2025 being well below the historical 28% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. Even after the forecast slowdown in growth, it seems obvious that Blackline Safety is also expected to grow faster than the wider industry.