PGG Wrightson Limited Just Beat EPS By 318%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that PGG Wrightson Limited (NZSE:PGW) released its yearly result to the market. The early response was not positive, with shares down 3.0% to NZ$1.94 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at NZ$916m, statutory earnings beat expectations by a notable 318%, coming in at NZ$0.041 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate suggests is in store for next year.

See our latest analysis for PGG Wrightson

Taking into account the latest results, the most recent consensus for PGG Wrightson from sole analyst is for revenues of NZ$934.3m in 2025. If met, it would imply a satisfactory 2.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 28% to NZ$0.052. Yet prior to the latest earnings, the analyst had been anticipated revenues of NZ$977.5m and earnings per share (EPS) of NZ$0.084 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analyst has cut their price target 9.5% to NZ$1.90.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that PGG Wrightson's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 4.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that PGG Wrightson is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for PGG Wrightson 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.