Analysts Are Updating Their Chrysos Corporation Limited (ASX:C79) Estimates After Its Half-Year Results

Simply Wall St.
23 Feb

Last week, you might have seen that Chrysos Corporation Limited (ASX:C79) released its half-year result to the market. The early response was not positive, with shares down 6.3% to AU$4.78 in the past week. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Chrysos

ASX:C79 Earnings and Revenue Growth February 22nd 2025

After the latest results, the four analysts covering Chrysos are now predicting revenues of AU$62.4m in 2025. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$64.1m and losses of AU$0.0069 per share in 2025. So we can see that while the consensus made a small dip in revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

There's been no real change to the consensus price target of AU$6.29, with Chrysos seemingly executing in line with expectations. 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. There are some variant perceptions on Chrysos, with the most bullish analyst valuing it at AU$7.00 and the most bearish at AU$5.40 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 pretty clear that there is an expectation that Chrysos' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 27% growth on an annualised basis. This is compared to a historical growth rate of 54% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% annually. So it's pretty clear that, while Chrysos' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at AU$6.29, with the latest estimates not enough to have an impact on their price targets.

At least one of Chrysos' four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Chrysos you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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