Yahoo Finance Hecla Mining Company (NYSE:HL) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Shareholders of Hecla Mining Company (NYSE:HL) will be pleased this week, given that the stock price is up 13% to US$5.35 following its latest quarterly results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$190m and statutory losses were US$0.01 per share. 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. 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 Hecla Mining
After the latest results, the six analysts covering Hecla Mining are now predicting revenues of US$841.6m in 2024. If met, this would reflect a solid 18% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Hecla Mining forecast to report a statutory profit of US$0.033 per share. Before this earnings report, the analysts had been forecasting revenues of US$830.7m and earnings per share (EPS) of US$0.015 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$7.08, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hecla Mining at US$10.25 per share, while the most bearish prices it at US$5.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hecla Mining's past performance and to peers in the same industry. It's clear from the latest estimates that Hecla Mining's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hecla Mining is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hecla Mining following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hecla Mining analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Hecla Mining is showing 2 warning signs in our investment analysis , you should know about...
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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.
