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Last week saw the newest full-year earnings release from Black Diamond Group Limited (TSE:BDI), an important milestone in the company's journey to build a stronger business. It was a workmanlike result, with revenues of CA$403m coming in 7.1% ahead of expectations, and statutory earnings per share of CA$0.41, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Black Diamond Group
Following the latest results, Black Diamond Group's six analysts are now forecasting revenues of CA$416.4m in 2025. This would be a credible 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to CA$0.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$401.0m and earnings per share (EPS) of CA$0.50 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of CA$12.42, implying that the uplift in revenue is not expected to greatly contribute to Black Diamond Group's valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Black Diamond Group, with the most bullish analyst valuing it at CA$14.75 and the most bearish at CA$10.50 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.
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 Black Diamond Group's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.2% annually. Even after the forecast slowdown in growth, it seems obvious that Black Diamond Group is also expected to grow faster than the wider industry.