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WildBrain Ltd. (TSE:WILD) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.5% to hit CA$129m. WildBrain also reported a statutory profit of CA$0.11, which was an impressive 267% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on WildBrain after the latest results.
Check out our latest analysis for WildBrain
After the latest results, the seven analysts covering WildBrain are now predicting revenues of CA$551.7m in 2023. If met, this would reflect a notable 8.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to swell 20% to CA$0.11. In the lead-up to this report, the analysts had been modelling revenues of CA$551.8m and earnings per share (EPS) of CA$0.12 in 2023. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at CA$4.44, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 WildBrain, with the most bullish analyst valuing it at CA$6.00 and the most bearish at CA$3.75 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 6.9% growth on an annualised basis. That is in line with its 6.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So it's pretty clear that WildBrain is expected to grow slower than similar companies in the same industry.