Partners Group Holding AG (VTX:PGHN) Just Missed Earnings: Here's What Analysts Think Will Happen Next
Partners Group Holding AG (VTX:PGHN) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 6.5% short of analyst estimates at CHF1.9b, and statutory earnings of CHF38.55 per share missed forecasts by 6.8%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Partners Group Holding
Taking into account the latest results, the current consensus from Partners Group Holding's 13 analysts is for revenues of CHF2.36b in 2024. This would reflect a huge 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 19% to CHF45.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF2.42b and earnings per share (EPS) of CHF47.48 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the CHF1,203 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Partners Group Holding, with the most bullish analyst valuing it at CHF1,360 and the most bearish at CHF920 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Partners Group Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Partners Group Holding's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Partners Group Holding is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Partners Group Holding. They also downgraded Partners Group Holding's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CHF1,203, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Partners Group Holding 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 2 warning signs for Partners Group Holding (1 is a bit unpleasant) 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.
