US$85.00 - That's What Analysts Think P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) Is Worth After These Results

P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) shareholders are probably feeling a little disappointed, since its shares fell 7.0% to US$67.70 in the week after its latest annual results. Results were roughly in line with estimates, with revenues of US$707m and statutory earnings per share of US$6.69. The analyst 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 collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

Check out our latest analysis for P.A.M. Transportation Services

After the latest results, the single analyst covering P.A.M. Transportation Services are now predicting revenues of US$799.7m in 2022. If met, this would reflect a meaningful 13% improvement in sales compared to the last 12 months. Per-share earnings are expected to climb 17% to US$8.00. Before this earnings report, the analyst had been forecasting revenues of US$763.9m and earnings per share (EPS) of US$7.20 in 2022. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a nice gain to earnings per share in particular.

It will come as no surprise to learn that the analyst has increased their price target for P.A.M. Transportation Services 188% to US$85.00on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that P.A.M. Transportation Services' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.7% p.a. 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 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that P.A.M. Transportation Services is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards P.A.M. Transportation Services following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for P.A.M. Transportation Services going out as far as 2023, 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 P.A.M. Transportation Services , 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.