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PROG Holdings, Inc. (NYSE:PRG) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.3% to hit US$592m. PROG Holdings reported statutory earnings per share (EPS) US$0.77, which was a notable 16% above what 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for PROG Holdings
Taking into account the latest results, PROG Holdings' six analysts currently expect revenues in 2024 to be US$2.41b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 3.4% to US$2.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.35b and earnings per share (EPS) of US$2.39 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for PROG Holdings 14% to US$46.00on the back of these upgrades. 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. The most optimistic PROG Holdings analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$41.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, PROG Holdings' top line has shrunk approximately 1.8% annually 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 12% annually. So it's pretty clear that, although revenues are improving, PROG Holdings is still expected to grow slower than the industry.