Yahoo Finance US$22.00: That's What Analysts Think Pluralsight, Inc. (NASDAQ:PS) Is Worth After Its Latest Results
Pluralsight, Inc. (NASDAQ:PS) investors will be delighted, with the company turning in some strong numbers with its latest results. Pluralsight beat expectations with revenues of US$99m arriving 4.3% ahead of forecasts. The company also reported a statutory loss of US$0.24, 6.1% smaller than was expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Pluralsight
Taking into account the latest results, the most recent consensus for Pluralsight from 14 analysts is for revenues of US$445.8m in 2021 which, if met, would be a solid 19% increase on its sales over the past 12 months. Losses are supposed to decline, shrinking 14% from last year to US$1.00. Before this latest report, the consensus had been expecting revenues of US$446.8m and US$1.11 per share in losses. Although the revenue estimates have not really changed Pluralsight'sfuture looks a little different to the past, with a the loss per share forecasts in particular.
Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 9.7% to US$22.00. It looks likethe analysts have become less optimistic about the overall business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Pluralsight analyst has a price target of US$27.00 per share, while the most pessimistic values it at US$18.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pluralsight shareholders.
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. We would highlight that Pluralsight's revenue growth is expected to slow, with forecast 19% increase next year well below the historical 30%p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% next year. Even after the forecast slowdown in growth, it seems obvious that Pluralsight is also 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pluralsight's future valuation.
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 Pluralsight going out to 2024, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 4 warning signs for Pluralsight you should be aware of.
This article by Simply Wall St is general in nature. 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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