It's been a pretty great week for Perseus Mining Limited (ASX:PRU) shareholders, with its shares surging 10% to AU$6.73 in the week since its latest annual results. It was not a great result overall. Although revenues beat expectations, hitting US$1.5b, statutory earnings missed analyst forecasts by 10%, coming in at just US$0.30 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Perseus Mining's seven analysts is for revenues of US$1.87b in 2027. This reflects a sizeable 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 21% to US$0.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.87b and earnings per share (EPS) of US$0.37 in 2027. So the consensus seems to have become somewhat more optimistic on Perseus Mining's earnings potential following these results.
See our latest analysis for Perseus Mining
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.3% to AU$6.35. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Perseus Mining at AU$7.70 per share, while the most bearish prices it at AU$3.20. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It's clear from the latest estimates that Perseus Mining's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 17% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Perseus Mining is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Perseus Mining's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Perseus Mining. Long-term earnings power is much more important than next year's profits. We have forecasts for Perseus Mining going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Perseus Mining Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.