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Investors in Primoris Services Corporation (NYSE:PRIM) had a good week, as its shares rose 6.2% to close at US$50.24 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$1.4b were what the analysts expected, Primoris Services surprised by delivering a (statutory) profit of US$0.35 per share, an impressive 347% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Primoris Services
Following last week's earnings report, Primoris Services' five analysts are forecasting 2024 revenues to be US$5.92b, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.1% to US$2.74. In the lead-up to this report, the analysts had been modelling revenues of US$6.08b and earnings per share (EPS) of US$2.70 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The average price target was steady at US$56.60even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Primoris Services at US$63.00 per share, while the most bearish prices it at US$49.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Primoris Services' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 13% 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 7.8% 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 Primoris Services.