PROS Holdings, Inc. (NYSE:PRO) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in PROS Holdings, Inc. (NYSE:PRO) had a good week, as its shares rose 2.5% to close at US$36.75 following the release of its yearly results. Revenues came in at US$304m, in line with forecasts and the company reported a statutory loss of US$1.22 per share, roughly in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for PROS Holdings

Taking into account the latest results, the current consensus from PROS Holdings' eight analysts is for revenues of US$333.2m in 2024. This would reflect a solid 9.7% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 32% to US$0.83. Before this latest report, the consensus had been expecting revenues of US$336.5m and US$0.91 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

The average price target held steady at US$41.09, seeming to indicate that business is performing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on PROS Holdings, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$37.90 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PROS Holdings' past performance and to peers in the same industry. The analysts are definitely expecting PROS Holdings' growth to accelerate, with the forecast 9.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, PROS Holdings is expected to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for PROS Holdings going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for PROS Holdings (1 can't be ignored) 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.