Pets at Home Group Plc (LON:PETS) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Pets at Home Group Plc (LON:PETS) had a good week, as its shares rose 7.8% to close at UK£2.96 following the release of its yearly results. Results were roughly in line with estimates, with revenues of UK£1.5b and statutory earnings per share of UK£0.16. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Pets at Home Group

Taking into account the latest results, the consensus forecast from Pets at Home Group's ten analysts is for revenues of UK£1.53b in 2025. This reflects an okay 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 28% to UK£0.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£1.54b and earnings per share (EPS) of UK£0.22 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at UK£3.54, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Pets at Home Group, with the most bullish analyst valuing it at UK£4.25 and the most bearish at UK£2.45 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Pets at Home Group's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 9.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Pets at Home Group.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pets at Home Group. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pets at Home Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£3.54, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pets at Home Group going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Pets at Home Group that you need to be mindful 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.