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It's been a sad week for TerraVest Industries Inc. (TSE:TVK), who've watched their investment drop 11% to CA$119 in the week since the company reported its quarterly result. The results were mixed; although revenues of CA$235m fell 11% short of what the analysts had predicted, per-share (statutory) earnings of CA$1.42 beat expectations by 40%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for TerraVest Industries
Taking into account the latest results, the consensus forecast from TerraVest Industries' four analysts is for revenues of CA$1.04b in 2025. This reflects a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 20% to CA$4.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$1.06b and earnings per share (EPS) of CA$4.08 in 2025. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the nice increase in to the earnings per share numbers.
The consensus has made no major changes to the price target of CA$127, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TerraVest Industries analyst has a price target of CA$132 per share, while the most pessimistic values it at CA$125. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that TerraVest Industries' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 26% 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) 5.4% per year. So it's pretty clear that, while TerraVest Industries' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.