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.
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)."
