Pacific Edge Limited (NZSE:PEB) Annual Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Pacific Edge Limited (NZSE:PEB) shareholders, because the company has just released its latest full-year results, and the shares gained 2.2% to NZ$0.47. The results were mixed overall, with revenues slightly ahead of analyst estimates at NZ$24m. Statutory losses by contrast were 3.5% larger than predictions at NZ$0.033 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Pacific Edge

Taking into account the latest results, the most recent consensus for Pacific Edge from four analysts is for revenues of NZ$31.3m in 2024 which, if met, would be a huge 32% increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting NZ$0.037 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of NZ$31.3m and losses of NZ$0.034 per share in 2024. While this year's revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

As a result, there was no major change to the consensus price target of NZ$0.57, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Pacific Edge at NZ$0.75 per share, while the most bearish prices it at NZ$0.48. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pacific Edge's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Pacific Edge'shistorical trends, as the 32% annualised revenue growth to the end of 2024 is roughly in line with the 35% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Pacific Edge is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Pacific Edge. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Pacific Edge. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Pacific Edge analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Pacific Edge , and understanding these should be part of your investment process.

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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.