PropertyGuru Group Limited (NYSE:PGRU) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that PropertyGuru Group Limited (NYSE:PGRU) filed its quarterly result this time last week. The early response was not positive, with shares down 5.5% to US$4.33 in the past week. Revenues were S$33m, and PropertyGuru Group was a dismal 11% short of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for PropertyGuru Group

Taking into account the latest results, the most recent consensus for PropertyGuru Group from seven analysts is for revenues of S$163.8m in 2023 which, if met, would be a decent 17% increase on its sales over the past 12 months. Losses are expected to increase slightly, to S$0.13 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of S$164.6m and losses of S$0.12 per share in 2023.

As a result there was no major change to the consensus price target of US$6.86, implying that the business is trading roughly in line with expectations despite ongoing losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on PropertyGuru Group, with the most bullish analyst valuing it at US$8.99 and the most bearish at US$5.19 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 20% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.7% annually. So although PropertyGuru Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PropertyGuru Group going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for PropertyGuru Group 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.