US$85.00 – This is what analysts think PAM Transportation Services, Inc. (NASDAQ:PTSI) is worth after these results
PAM Transportation Services, Inc. (NASDAQ:PTSI) Shareholders are likely feeling a bit disappointed, as 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 revenue of $707 million and statutory earnings per share of $6.69. The analyst typically updates their forecast with each earnings report, and we can judge from their estimates if their view of the business has changed or if there are new concerns to consider. So we’ve gathered the latest post-earnings statutory consensus estimate to see what might be in store for next year.
Check out our latest analysis for PAM Transportation Services
Following the latest results, the single analyst covering PAM Transportation Services now forecasts revenue of US$799.7 million in 2022. If achieved, this would reflect a significant 13% improvement in sales over the past 12 months . Earnings per share are expected to climb 17% to US$8.00. Prior to this earnings report, the analyst forecast revenue of US$763.9 million and earnings per share (EPS) of US$7.20 in 2022. There has been a fairly noticeable uptick in sentiment, l ‘analyst improving revenue and realizing a nice increase in profit per share in particular.
It will come as no surprise to learn that the analyst increased his price target for PAM Transportation Services by 188% to $85.00 with these upgrades.
Of course, another way to look at these predictions is to put them in context with the industry itself. It is clear from the latest estimates that the growth rate of PAM Transportation Services is set to accelerate significantly, with forecast annualized revenue growth of 13% through the end of 2022 significantly faster than its historic growth of 6 .7% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow revenue by 9.8% annually. Taking into account the expected revenue acceleration, it’s pretty clear that PAM Transportation Services is expected to grow much faster than its industry.
The most important thing here is that the analyst has updated its earnings per share estimates, suggesting that there has been a marked increase in optimism towards PAM Transportation Services following these results. Luckily, they’ve also updated their revenue estimates, and their forecasts suggest the company is set to grow faster than the industry as a whole. We note an upward revision to the target price, suggesting that the analyst believes the company’s intrinsic value is likely to improve over time.
With that in mind, we still believe the longer-term trajectory of the company is much more important for investors to consider. We have analyst estimates for PAM Transportation Services up to 2023, and you can view them for free on our platform here.
That said, it is still necessary to consider the ever-present specter of investment risk. We have identified 2 warning signs with PAM Transportation Services, and understanding them should be part of your investment process.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.