As you might know, Pod Point Group Holdings Plc (LON:PODP) recently reported its full-year numbers. It was a pretty bad result overall; while revenues were in line with expectations at UK£64m, statutory losses exploded to UK£0.54 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Pod Point Group Holdings
After the latest results, the consensus from Pod Point Group Holdings’ four analysts is for revenues of UK£61.2m in 2024, which would reflect a perceptible 4.1% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 62% to UK£0.21. Yet prior to the latest earnings, the analysts had been forecasting revenues of UK£60.9m and losses of UK£0.20 per share in 2024.
As a result, it’s unexpected to see that the consensus price target fell 20% to UK£0.40, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. 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 Pod Point Group Holdings analyst has a price target of UK£0.60 per share, while the most pessimistic values it at UK£0.30. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.1% by the end of 2024. This indicates a significant reduction from annual growth of 23% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. It’s pretty clear that Pod Point Group Holdings’ revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pod Point Group Holdings’ future valuation.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have estimates – from multiple Pod Point Group Holdings analysts – going out to 2026, and you can see them free on our platform here.
Don’t forget that there may still be risks. For instance, we’ve identified 3 warning signs for Pod Point Group Holdings that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
