Results: PWR Holdings Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

A week ago, PWR Holdings Limited (ASX:PWH) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of AU$171m arriving 2.9% ahead of forecasts. Statutory earnings per share (EPS) were AU$0.18, 9.0% ahead of estimates. 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.

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Taking into account the latest results, the current consensus from PWR Holdings’ eight analysts is for revenues of AU$189.0m in 2027. This would reflect a decent 11% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 36% to AU$0.24. In the lead-up to this report, the analysts had been modelling revenues of AU$183.6m and earnings per share (EPS) of AU$0.23 in 2027. It looks like there’s been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for PWR Holdings

It will come as no surprise to learn that the analysts have increased their price target for PWR Holdings 5.3% to AU$10.61on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on PWR Holdings, with the most bullish analyst valuing it at AU$11.50 and the most bearish at AU$9.75 per share. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 2027 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So although PWR Holdings is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around PWR Holdings’ earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have estimates – from multiple PWR Holdings analysts – going out to 2029, and you can see them free on our platform here.

You can also view our analysis of PWR Holdings’ balance sheet, and whether we think PWR Holdings is carrying too much debt, for free on our platform here.

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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.