It's been a good week for Teck Resources Limited (TSE:TECK.B) shareholders, because the company has just released its latest yearly results, and the shares gained 2.2% to CA$52.41. Revenues of CA$15b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CA$4.64, missing estimates by 8.4%. 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. 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 Teck Resources

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Following the latest results, Teck Resources' nine analysts are now forecasting revenues of CA$17.1b in 2024. This would be a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 20% to CA$5.64. Before this earnings report, the analysts had been forecasting revenues of CA$17.0b and earnings per share (EPS) of CA$5.38 in 2024. So the consensus seems to have become somewhat more optimistic on Teck Resources' earnings potential following these results.

There's been no major changes to the consensus price target of CA$61.58, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Teck Resources at CA$78.00 per share, while the most bearish prices it at CA$45.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Teck Resources' past performance and to peers in the same industry. The analysts are definitely expecting Teck Resources' growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Teck Resources is expected to grow at about the same rate as the wider 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 Teck Resources following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CA$61.58, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Teck Resources going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example – Teck Resources has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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