UK£2.58: That's What Analysts Think Pod Point Group Holdings Plc (LON:PODP) Is Worth After Its Latest Results

It's been a good week for Pod Point Group Holdings Plc (LON:PODP) shareholders, because the company has just released its latest half-year results, and the shares gained 5.0% to UK£1.06. It was a pretty good result, with revenues of UK£42m, and Pod Point Group Holdings came in a solid 16% ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Pod Point Group Holdings

Taking into account the latest results, the current consensus from Pod Point Group Holdings' twin analysts is for revenues of UK£82.2m in 2022, which would reflect a satisfactory 7.5% increase on its sales over the past 12 months. Per-share losses are predicted to creep up to UK£0.10. Yet prior to the latest earnings, the analysts had been forecasting revenues of UK£85.4m and losses of UK£0.10 per share in 2022. Overall it looks as though the analysts are negative in this update. Although sales forecasts held steady, the consensus also made a pronounced increase to to its losses per share forecasts.

The consensus price target fell 7.2% to UK£2.58, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pod Point Group Holdings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Pod Point Group Holdings' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 60% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 25% per year. Factoring in the forecast slowdown in growth, it seems obvious that Pod Point Group Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Pod Point Group Holdings. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Pod Point Group 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.