PJT Partners Inc. (NYSE:PJT) just released its latest yearly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.0% to hit US$718m. Statutory earnings per share (EPS) came in at US$1.21, some 5.2% above what analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the four analysts covering Partners are now predicting revenues of US$842.1m in 2020. If met, this would reflect a solid 17% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to soar 191% to US$3.58. In the lead-up to this report, analysts had been modelling revenues of US$817.3m and earnings per share (EPS) of US$3.25 in 2020. There's been a pretty noticeable increase in sentiment, with analysts upgrading revenues and making a solid gain to earnings per share in particular
It will come as no surprise to learn that analysts have increased their price target for Partners 11% to US$56.25 on the back of these upgrades. 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. There are some variant perceptions on Partners, with the most bullish analyst valuing it at US$59.00 and the most bearish at US$53.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Analysts are definitely expecting Partners's growth to accelerate, with the forecast 17% growth ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 4.7% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Partners to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around Partners's earnings potential next year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
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 Partners analysts - going out to 2022, and you can see them free on our platform here.
We also provide an overview of the Partners Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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