Yahoo Finance Pushpay Holdings Limited Just Missed Earnings - But Analysts Have Updated Their Models
Last week, you might have seen that Pushpay Holdings Limited (NZSE:PPH) released its yearly result to the market. The early response was not positive, with shares down 5.8% to NZ$1.62 in the past week. Statutory earnings per share fell badly short of expectations, coming in at US$0.027, some 52% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$179m. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Pushpay Holdings
Taking into account the latest results, the consensus forecast from Pushpay Holdings' four analysts is for revenues of US$205.2m in 2022, which would reflect a decent 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 54% to US$0.044. Before this earnings report, the analysts had been forecasting revenues of US$215.6m and earnings per share (EPS) of US$0.08 in 2022. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a large cut to earnings per share numbers.
It'll come as no surprise then, to learn that the analysts have cut their price target 11% to NZ$2.20. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Pushpay Holdings at NZ$3.27 per share, while the most bearish prices it at NZ$1.80. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Pushpay Holdings' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2022 being well below the historical 38% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 26% per year. Factoring in the forecast slowdown in growth, it seems obvious that Pushpay Holdings is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pushpay Holdings. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Pushpay Holdings going out to 2024, and you can see them free on our platform here..
Even so, be aware that Pushpay Holdings is showing 1 warning sign in our investment analysis , you should know about...
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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