Peter Warren Automotive Holdings Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's been a mediocre week for Peter Warren Automotive Holdings Limited (ASX:PWR) shareholders, with the stock dropping 11% to AU$0.86 in the week since its latest yearly results. Statutory earnings per share fell badly short of expectations, coming in at AU$0.037, some 46% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at AU$2.5b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Peter Warren Automotive Holdings after the latest results.

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Taking into account the latest results, the current consensus from Peter Warren Automotive Holdings' six analysts is for revenues of AU$2.61b in 2027. This would reflect an okay 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 83% to AU$0.067. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$2.88b and earnings per share (EPS) of AU$0.096 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

View our latest analysis for Peter Warren Automotive Holdings

The consensus price target fell 23% to AU$1.19, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Peter Warren Automotive Holdings analyst has a price target of AU$1.45 per share, while the most pessimistic values it at AU$0.90. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Peter Warren Automotive Holdings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Peter Warren Automotive Holdings' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Peter Warren Automotive Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Peter Warren Automotive Holdings analysts - going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Peter Warren Automotive Holdings (1 is a bit concerning) 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.