Analysts Are Updating Their Pet Valu Holdings Ltd. (TSE:PET) Estimates After Its First-Quarter Results

Pet Valu Holdings Ltd. (TSE:PET) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of CA$261m and statutory earnings per share of CA$1.24. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Pet Valu Holdings

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Taking into account the latest results, the current consensus from Pet Valu Holdings' nine analysts is for revenues of CA$1.12b in 2024. This would reflect a satisfactory 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.6% to CA$1.28. Before this earnings report, the analysts had been forecasting revenues of CA$1.13b and earnings per share (EPS) of CA$1.30 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CA$37.21, suggesting that the company has met expectations in its recent result. 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 Pet Valu Holdings at CA$42.50 per share, while the most bearish prices it at CA$33.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 pretty clear that there is an expectation that Pet Valu Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past three years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.5% per year. Factoring in the forecast slowdown in growth, it looks like Pet Valu Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CA$37.21, 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 Pet Valu Holdings going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Pet Valu Holdings 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.