Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Procore Technologies, Inc. (NYSE:PCOR) After Its First-Quarter Report
Procore Technologies, Inc. (NYSE:PCOR) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to US$49.99 in the week after its latest quarterly results. It looks like a positive result overall, with revenues of US$160m beating forecasts by 6.2%. Statutory losses of US$0.53 per share were roughly in line with what the analysts had forecast. 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.
View our latest analysis for Procore Technologies
After the latest results, the eleven analysts covering Procore Technologies are now predicting revenues of US$678.4m in 2022. If met, this would reflect a substantial 21% improvement in sales compared to the last 12 months. Losses are supposed to decline, shrinking 16% from last year to US$1.99. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$662.9m and losses of US$1.99 per share in 2022.
There were no major changes to the US$84.82consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales. 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. Currently, the most bullish analyst values Procore Technologies at US$113 per share, while the most bearish prices it at US$70.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 29% growth on an annualised basis. That is in line with its 33% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So although Procore Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$84.82, 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 Procore Technologies going out to 2024, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 3 warning signs for Procore Technologies 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.
