A week ago, First Resources Limited (SGX:EB5) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$1.0b, some 4.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.16, 22% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for First Resources

Taking into account the latest results, the consensus forecast from First Resources' six analysts is for revenues of US$1.06b in 2025. This reflects a satisfactory 2.1% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$1.05b and earnings per share (EPS) of US$0.13 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of S$1.73, with First Resources seemingly executing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic First Resources analyst has a price target of S$2.01 per share, while the most pessimistic values it at S$1.49. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 pretty clear that there is an expectation that First Resources' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that First Resources is also expected to grow slower than other industry participants.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that First Resources' revenue is expected to perform worse 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.

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

Plus, you should also learn about the 2 warning signs we've spotted with First Resources (including 1 which shouldn't be ignored) .

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