Yahoo Finance Perpetual Limited (ASX:PPT) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates
Last week, you might have seen that Perpetual Limited (ASX:PPT) released its interim result to the market. The early response was not positive, with shares down 6.1% to AU$30.74 in the past week. Results overall were respectable, with statutory earnings of AU$1.73 per share roughly in line with what the analysts had forecast. Revenues of AU$281m came in 2.8% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Perpetual
Following the latest results, Perpetual's ten analysts are now forecasting revenues of AU$623.1m in 2021. This would be a solid 19% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to rise 2.7% to AU$1.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$613.0m and earnings per share (EPS) of AU$1.12 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at AU$36.29, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Perpetual analyst has a price target of AU$44.30 per share, while the most pessimistic values it at AU$31.50. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. For example, we noticed that Perpetual's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 19%, well above its historical decline of 0.003% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.0% per year. So it looks like Perpetual is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Perpetual following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Perpetual going out to 2024, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Perpetual that you should be aware of.
This article by Simply Wall St is general in nature. 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.
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