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Shareholders might have noticed that Pet Valu Holdings Ltd. (TSE:PET) filed its quarterly result this time last week. The early response was not positive, with shares down 9.9% to CA$24.33 in the past week. Pet Valu Holdings reported in line with analyst predictions, delivering revenues of CA$265m and statutory earnings per share of CA$1.24, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Pet Valu Holdings
Taking into account the latest results, Pet Valu Holdings' ten analysts currently expect revenues in 2024 to be CA$1.09b, approximately in line with the last 12 months. Statutory per share are forecast to be CA$1.15, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CA$1.12b and earnings per share (EPS) of CA$1.28 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 12% to CA$32.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Pet Valu Holdings, with the most bullish analyst valuing it at CA$40.00 and the most bearish at CA$27.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Pet Valu Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Pet Valu Holdings.