Planet Labs PBC (NYSE:PL) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Planet Labs PBC (NYSE:PL) investors will be delighted, with the company turning in some strong numbers with its latest results. Results overall were solid, with revenues arriving 5.3% better than analyst forecasts at US$50m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.15 per share, were 5.3% smaller than the analysts expected. 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.

See our latest analysis for Planet Labs PBC

Taking into account the latest results, the most recent consensus for Planet Labs PBC from eight analysts is for revenues of US$262.2m in 2024 which, if met, would be a sizeable 49% increase on its sales over the past 12 months. Losses are forecast to narrow 3.2% to US$0.60 per share. Before this earnings announcement, the analysts had been modelling revenues of US$262.3m and losses of US$0.61 per share in 2024.

As a result there was no major change to the consensus price target of US$9.38, implying that the business is trading roughly in line with expectations despite ongoing losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Planet Labs PBC at US$12.00 per share, while the most bearish prices it at US$7.00. 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 Planet Labs PBC shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Planet Labs PBC's past performance and to peers in the same industry. The analysts are definitely expecting Planet Labs PBC's growth to accelerate, with the forecast 38% annualised growth to the end of 2024 ranking favourably alongside historical growth of 21% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Planet Labs PBC to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$9.38, 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. We have forecasts for Planet Labs PBC going out to 2025, 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 Planet Labs PBC , 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.