Yahoo Finance PropNex Limited (SGX:OYY) Fell Short of Analyst Expectations: Here's What You Need To Know
As you might know, PropNex Limited (SGX:OYY) last week released its latest annual, and things did not turn out so great for shareholders. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of S$838m missed by 13%, and statutory earnings per share of S$0.065 fell short of forecasts by 15%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for PropNex
Following the latest results, PropNex's five analysts are now forecasting revenues of S$986.1m in 2024. This would be a solid 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 30% to S$0.084. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$1.01b and earnings per share (EPS) of S$0.093 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the S$1.11 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic PropNex analyst has a price target of S$1.23 per share, while the most pessimistic values it at S$0.94. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of PropNex'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 21% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 0.3% per year. So not only is PropNex expected to maintain its revenue growth despite the wider downturn, it's also forecast to grow faster than the industry as a whole.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PropNex. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target held steady at S$1.11, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple PropNex analysts - going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for PropNex that 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.
