Pilbara Minerals Ltd (ASX: PLS) shares will be on watch next week.
That's because the lithium giant is scheduled to release its half year results on 22 February.
Ahead of the release, let's take a look at what the market is expecting.
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What is the market expecting from Pilbara Minerals' half year results?
It is fair to say that a blockbuster result is expected from the miner next week thanks to sky high lithium prices. In addition, Pilbara Minerals recently announced plans to pay its maiden dividend in FY 2023, so all eyes will be on that.
According to a note out of Goldman Sachs, its analysts are expecting the company to post half year revenue of $2,121 million. This will be up a whopping 627% over the prior corresponding period but 1% short of the consensus estimate of $2,152 million.
Goldman is expecting the company's operating expenses to increase 151% to $351 million, compared to consensus estimate of $361 million.
This is expected to underpin a 1,067% increase in underlying EBITDA to $1,770 million according to the broker, which is just a touch shy of the consensus estimate of $1,792 million.
And on the bottom line, an underlying net profit after tax of $1,211 million is expected by Goldman, which is broadly in line with the consensus estimate of $1,219 million. Both will be up over 1,300% year over year.
Finally, Goldman believes this will underpin a maiden 10 cents per share dividend. The broker summarised:
PLS will release 1H23 results in late February. We forecast underlying earnings of A$1.2bn (up >14x on PcP); underlying EBITDA of A$1.8bn, net cash of A$2.1bn (as reported), and DPS of A$10cps (slightly below the bottom end of the target payout ratio at 20-30%). PLS expect to update FY23 guidance with the result.
