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Westshore Terminals Investment Corporation (TSE:WTE) just released its latest quarterly results and things are looking bullish. Westshore Terminals Investment beat earnings, with revenues hitting CA$103m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 20%. Following the result, the analyst has 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
View our latest analysis for Westshore Terminals Investment
Following the recent earnings report, the consensus from lone analyst covering Westshore Terminals Investment is for revenues of CA$370.3m in 2025. This implies a measurable 3.9% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 8.1% to CA$1.58 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of CA$371.6m and earnings per share (EPS) of CA$1.47 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.
The average the analyst price target fell 5.2% to CA$25.00, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.
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. Over the past five years, revenues have declined around 2.0% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 3.1% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.7% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Westshore Terminals Investment to suffer worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Westshore Terminals Investment's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Westshore Terminals Investment's future valuation.