Earnings Update: PensionBee Group plc (LON:PBEE) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts
PensionBee Group plc (LON:PBEE) shareholders are probably feeling a little disappointed, since its shares fell 8.4% to UK£0.95 in the week after its latest full-year results. Sales hit UK£18m in line with forecasts, although the company reported a statutory loss per share of UK£0.10 that was somewhat smaller than the analysts expected. 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.
See our latest analysis for PensionBee Group
After the latest results, the five analysts covering PensionBee Group are now predicting revenues of UK£23.9m in 2023. If met, this would reflect a major 35% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 47% to UK£0.052. Before this latest report, the consensus had been expecting revenues of UK£25.0m and UK£0.077 per share in losses. Although the revenue estimates have fallen somewhat, PensionBee Group'sfuture looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.
The consensus price target was broadly unchanged at UK£1.54, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. 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. There are some variant perceptions on PensionBee Group, with the most bullish analyst valuing it at UK£2.30 and the most bearish at UK£0.75 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PensionBee Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that PensionBee Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 35% growth on an annualised basis. This is compared to a historical growth rate of 45% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. So it's pretty clear that, while PensionBee Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at UK£1.54, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for PensionBee Group going out to 2025, 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 PensionBee Group that you should be aware of.
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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.
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