It's been a sad week for Perpetual Limited (ASX:PPT), who've watched their investment drop 17% to AU$19.81 in the week since the company reported its half-year result. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Perpetual ASX:PPT Earnings and Revenue Growth March 1st 2025

Following last week's earnings report, Perpetual's nine analysts are forecasting 2025 revenues to be AU$1.38b, approximately in line with the last 12 months. Perpetual is also expected to turn profitable, with statutory earnings of AU$0.70 per share. Before this earnings report, the analysts had been forecasting revenues of AU$1.38b and earnings per share (EPS) of AU$1.01 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

The consensus price target held steady at AU$23.49, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Perpetual at AU$25.30 per share, while the most bearish prices it at AU$21.05. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Perpetual is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.3% by the end of 2025. This indicates a significant reduction from annual growth of 23% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Perpetual is expected to lag the wider industry.

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 plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at AU$23.49, with the latest estimates not enough to have an impact on their price targets.

Story Continues

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Perpetual going out to 2027, and you can see them free on our platform here.

Even so, be aware that  Perpetual is showing  1 warning sign in our investment analysis, you should know about...

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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.

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