Analysts Are Updating Their P10, Inc. (NYSE:PX) Estimates After Its First-Quarter Results

Investors in P10, Inc. (NYSE:PX) had a good week, as its shares rose 8.3% to close at US$8.18 following the release of its first-quarter results. Results overall were respectable, with statutory earnings of US$0.04 per share roughly in line with what the analysts had forecast. Revenues of US$66m came in 3.4% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for P10

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Following the latest results, P10's six analysts are now forecasting revenues of US$265.6m in 2024. This would be an okay 6.0% improvement in revenue compared to the last 12 months. P10 is also expected to turn profitable, with statutory earnings of US$0.16 per share. In the lead-up to this report, the analysts had been modelling revenues of US$264.5m and earnings per share (EPS) of US$0.08 in 2024. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$10.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values P10 at US$12.00 per share, while the most bearish prices it at US$9.00. 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. We would highlight that P10's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2024 being well below the historical 30% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% annually. So it's pretty clear that, while P10's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards P10 following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on P10. Long-term earnings power is much more important than next year's profits. We have forecasts for P10 going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for P10 (of which 1 shouldn't be ignored!) you should know about.

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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.