Analyst Estimates: Here's What Brokers Think Of Pet Valu Holdings Ltd. (TSE:PET) After Its Third-Quarter Report

Pet Valu Holdings Ltd. (TSE:PET) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a workmanlike result, with revenues of CA$276m coming in 3.0% ahead of expectations, and statutory earnings per share of CA$1.24, in line with analyst appraisals. 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.

Check out our latest analysis for Pet Valu Holdings

Taking into account the latest results, the current consensus from Pet Valu Holdings' nine analysts is for revenues of CA$1.17b in 2025. This would reflect a satisfactory 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 9.9% to CA$1.34. Before this earnings report, the analysts had been forecasting revenues of CA$1.18b and earnings per share (EPS) of CA$1.54 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$31.82, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Pet Valu Holdings, with the most bullish analyst valuing it at CA$41.00 and the most bearish at CA$27.00 per share. 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 Pet Valu Holdings shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Pet Valu Holdings' revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.1% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Pet Valu Holdings is still expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pet Valu Holdings. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at CA$31.82, 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..

Before you take the next step you should know about the 1 warning sign for Pet Valu Holdings that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.