Yahoo Finance Here's What Analysts Are Forecasting For Pivotree Inc. (CVE:PVT) After Its Third-Quarter Results
Last week saw the newest quarterly earnings release from Pivotree Inc. (CVE:PVT), an important milestone in the company's journey to build a stronger business. Revenues came in at CA$16m, in line with expectations, while statutory losses per share were substantially higher than expected, at CA$0.13 per share. 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.
View our latest analysis for Pivotree
Following the latest results, Pivotree's four analysts are now forecasting revenues of CA$89.3m in 2022. This would be a sizeable 44% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 52% to CA$0.26. Yet prior to the latest earnings, the analysts had been forecasting revenues of CA$79.5m and losses of CA$0.18 per share in 2022. Ergo, there's been a clear change in sentiment, with the analysts lifting next year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.
There was no major change to the consensus price target of CA$8.31, with growing revenues seemingly enough to offset the concern of growing losses. 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. The most optimistic Pivotree analyst has a price target of CA$10.00 per share, while the most pessimistic values it at CA$5.50. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Pivotree's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.6% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pivotree to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased 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 CA$8.31, 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. We have forecasts for Pivotree going out to 2023, and you can see them free on our platform here.
Even so, be aware that Pivotree is showing 3 warning signs in our investment analysis , you should know about...
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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