Primoris Services Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Primoris Services Corporation (NYSE:PRIM) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 18% higher than the analysts had forecast, at US$2.2b, while EPS were US$1.73 beating analyst models by 37%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Primoris Services' eleven analysts are now forecasting revenues of US$8.05b in 2026. This would be a satisfactory 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 5.6% to US$5.42. In the lead-up to this report, the analysts had been modelling revenues of US$7.73b and earnings per share (EPS) of US$5.25 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Primoris Services

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$154, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic Primoris Services analyst has a price target of US$175 per share, while the most pessimistic values it at US$128. 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 Primoris Services 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 Primoris Services' revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Primoris Services is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Primoris Services' earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 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 Primoris Services 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 Primoris Services 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.