Investors in Equinox Gold Corp. (TSE:EQX) had a good week, as its shares rose 7.3% to close at CA$8.10 following the release of its third-quarter results. Equinox Gold's revenues suffered a miss, falling 2.2% short of forecasts, at US$428m. Statutory earnings per share (EPS) however performed much better, reaching break-even. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Equinox Gold after the latest results.

See our latest analysis for Equinox Gold

Taking into account the latest results, the consensus forecast from Equinox Gold's five analysts is for revenues of US$2.45b in 2025. This reflects a huge 98% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 97% to US$1.07. Before this earnings report, the analysts had been forecasting revenues of US$2.41b and earnings per share (EPS) of US$1.09 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at CA$11.22, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Equinox Gold, with the most bullish analyst valuing it at CA$16.98 and the most bearish at CA$8.46 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Equinox Gold's rate of growth is expected to accelerate meaningfully, with the forecast 73% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 18% 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Equinox Gold to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CA$11.22, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Equinox Gold. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Equinox Gold analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Equinox Gold (1 can't be ignored) you should be aware of.

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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.