All eyes will be on Mineral Resources Ltd (ASX: MIN) shares next week when the mining and mining services company releases its FY 2023 results.
But what is the market expecting from the company on Tuesday? Let's find out.
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Mineral Resources FY 2023 results preview
Opinion remains divided on what Mineral Resources will report next week.
For example, Goldman Sachs is forecasting revenue of $4,768 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $1,801 million. This represents an increase of 39.5% and 75.9%, respectively.
Whereas over at Bell Potter, its analysts are expecting softer revenue of $4,532.8 million and lower EBITDA of $1,715.7 million.
And on the bottom line, Goldman has pencilled in an underlying profit of $735 million (up 83.75%) and Bell Potter expects the miner to report an underlying profit of $673.2 million.
Finally, Mineral Resources has provided investors with big dividend yields in the past. However, Goldman isn't expecting this to be the case this year. It expects a fully franked dividend of $1.56 per share, which represents a 2.4% yield.
This is a touch ahead of the $1.42 dividend that Bell Potter is forecasting for FY 2023.
Are Mineral Resources shares a buy?
Interestingly, despite Goldman forecasting higher revenue, earnings, and dividends, its analysts are extremely bearish and have a sell rating and $56 on Mineral Resources' shares. Whereas Bell Potter has a buy rating and a lofty $90 price target.
These price targets imply a potential downside of 15.5% and potential upside of almost 37% over the next 12 months.
Goldman is bearish due to concerns over the company's free cash flow outlook. It notes that it is forecasting" low/negative FCF across FY23-25 and a FCF yield of -7%/+1%/-2% over these years."
Bell Potter is bullish because "MIN's business is undergoing considerable growth (with more certain to follow)."
