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Playa Hotels & Resorts N.V. (NASDAQ:PLYA) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$129m exceeding analyst forecasts by 29%, and statutory losses of US$0.05 were likewise much smaller than the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Playa Hotels & Resorts after the latest results.
View our latest analysis for Playa Hotels & Resorts
Taking into account the latest results, the current consensus from Playa Hotels & Resorts' six analysts is for revenues of US$464.2m in 2021, which would reflect a major 55% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 37% to US$0.98. Before this latest report, the consensus had been expecting revenues of US$416.2m and US$0.95 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts lifting this year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.
There was no major change to the consensus price target of US$9.50, with growing revenues seemingly enough to offset the concern of growing losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Playa Hotels & Resorts analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$6.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. One thing stands out from these estimates, which is that Playa Hotels & Resorts is forecast to grow faster in the future than it has in the past, with revenues expected to display 140% annualised growth until the end of 2021. If achieved, this would be a much better result than the 7.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 20% annually. So it looks like Playa Hotels & Resorts is expected to grow faster than its competitors, at least for a while.