June 18, 2024

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Here’s What Analysts Are Forecasting Next

Pivot Technology Solutions, Inc. (TSE:PTG) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall – although revenues of US$1.2b were what the analyst expected, Pivot Technology Solutions surprised by delivering a (statutory) profit of US$0.35 per share, an impressive 25% above what was forecast. Earnings are an important time for investors, as they can track a company’s performance, look at what the analyst is forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for Pivot Technology Solutions

TSX:PTG Past and Future Earnings April 2nd 2020

Following the recent earnings report, the consensus from single analyst covering Pivot Technology Solutions is for revenues of US$1.18b in 2020, implying a small 3.3% decline in sales compared to the last 12 months. Statutory earnings per share are forecast to plunge 66% to US$0.12 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$1.17b and earnings per share (EPS) of US$0.16 in 2020. So there’s definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

The consensus price target held steady at US$1.76, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pivot Technology Solutions’ past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it’s the idea that Pivot Technology Solutions’decline is expected to accelerate, with revenues forecast to fall 3.3% next year, topping off a historical decline of 1.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.4% per year. So it’s pretty clear that, while it does have declining revenues, the analyst also expect Pivot Technology Solutions to suffer worse than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pivot Technology Solutions. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at US$1.76, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn’t be too quick to come to a conclusion on Pivot Technology Solutions. Long-term earnings power is much more important than next year’s profits. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

Before you take the next step you should know about the 3 warning signs for Pivot Technology Solutions that we have uncovered.

If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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