Can the analyst consensus estimate for 2022 Earnings be met? Analyst consensus estimate for 2022 Earnings per share = C$0.37 = US$0.28 (assuming 1US$ = C$1.33)
So to meet the analyst consensus annual earnings estimate, Largo must realise ~US$18M in Earnings or a net profit margin of ~8% out of an estimated Annual Revenue of US$233.75
Question: Can the analyst consensus estimate of US$0.28/share for 2022 EPS be met?
As a reminder:
1) In 2021 the company had US$22.6M in Earnings or a net profit margin of 11.4% out of an annual revenue of US$198.3M
2) Q2-22 had a net profit margin of ~21% out of a revenue of US$84.8M although we also had a net loss of (US$0.04)/share out of a revenue of ~US$54M in Q3-22 due mainly to non-recurring expenses and taxes.
Conclusion: IMHO, an annual EPS of US$0.28 out of an estimated annual revenue of US$233.75 is achievable if the non-recurring expenses are under control and if we can claim some tax/deferred tax credits like last year.
Analyst 2022 Earnings Estimates as per Yahoo Finance
