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Hudbay Minerals Inc. (TSE:HBM) investors will be delighted, with the company turning in some strong numbers with its latest results. Hudbay Minerals delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$595m-14% above indicated-andUS$0.25-54% above forecasts- respectively 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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Taking into account the latest results, the most recent consensus for Hudbay Minerals from ten analysts is for revenues of US$2.21b in 2025. If met, it would imply a reasonable 5.6% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 89% to US$0.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.11b and earnings per share (EPS) of US$0.56 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a great increase in earnings per share in particular.
Check out our latest analysis for Hudbay Minerals
Despite these upgrades,the analysts have not made any major changes to their price target of CA$14.64, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hudbay Minerals, with the most bullish analyst valuing it at CA$17.06 and the most bearish at CA$11.99 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Hudbay Minerals' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hudbay Minerals.