PJT Partners Inc. Beat Revenue Forecasts By 21%: Here's What Analysts Are Forecasting Next
As you might know, PJT Partners Inc. (NYSE:PJT) just kicked off its latest quarterly results with some very strong numbers. Revenues of US$200m beat analyst expectations by a huge 21%, while statutory earnings per share (EPS) ofUS$1.21 also beat forecasts by 5.2%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Partners
Taking into account the latest results, the current consensus, from the three analysts covering Partners, is for revenues of US$737.0m in 2020, which would reflect a discernible 6.7% reduction in Partners' sales over the past 12 months. Prior to the latest earnings, the analysts were forecasting revenues of US$754.9m in 2020, and did not provide an earnings per share estimate. The consensus seems a bit less optimistic overall, with the revenue forecasts following the latest results.
Additionally, the consensus price target for Partners rose 8.6% to US$58.67, showing a clear increase in optimism from the the analysts involved. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Partners at US$63.00 per share, while the most bearish prices it at US$56.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 6.7%, a significant reduction from annual growth of 12% 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 3.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Partners is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
At least one of Partners' three analysts has provided estimates out to 2022, which can be seen for free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Partners (including 1 which doesn't sit too well with us) .
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