Performant Financial Reports Surprising Earnings Loss Amid Revenue Growth
Performant Financial (PFMT) released its latest quarterly results, showing a loss of $0.01 per share, outperforming the Zacks Consensus Estimate which predicted a loss of $0.02. This marks a stable performance compared to the same period last year. These results are adjusted for non-recurring items.
Quarterly Performance Overview
This earnings report indicates a 50% earnings surprise. In the prior quarter, the company was anticipated to incur a loss of $0.04 per share, and it met that expectation by reporting a loss of $0.04.
In the past year, Performant Financial has only exceeded consensus EPS estimates once across four quarters. The company reported revenues of $31.52 million for the quarter ending September 2024, which fell short of the Zacks Consensus Estimate by 0.57%. In the same quarter last year, revenues stood at $29.96 million. Similar to EPS outcomes, Performant has only surpassed consensus revenue estimates once in the past year.
The future trajectory of the company’s stock is likely tied to the management’s insights during the upcoming earnings call.
Year-to-Date Stock Performance
Since the start of 2024, Performant Financial’s shares have gained about 28%, outpacing the S&P 500’s increase of 21.2%.
Looking Ahead
After this quarter’s report, investors are left pondering the future of Performant Financial’s stock. A significant factor contributing to market performance will be the company’s earnings outlook.
This outlook not only includes current consensus earnings expectations for upcoming quarters but also any recent changes in these estimates. Historical data suggests a strong link between stock performance and the direction of earnings estimate revisions. Investors may use tools like the Zacks Rank to keep an eye on these revisions, which has a solid reputation for predicting stock movements based on earnings trends.
The latest estimate revisions for Performant Financial are mixed. The stock currently holds a Zacks Rank of #3 (Hold), implying it is expected to perform similarly to the market in the near term. The next consensus EPS estimate stands at $0.02 on projected revenues of $37.6 million for the upcoming quarter, while the current fiscal year’s estimate is at -$0.06 on $125.9 million in revenues.
Investors should also consider the broader industry outlook, as it can greatly influence stock performance. The Zacks Industry Rank places the Business – Services sector in the top 23% out of over 250 Zacks industries. Research indicates that the top half of Zacks-ranked industries outperform the bottom half by a significant margin.
Another player in this space, comScore (SCOR), has yet to report its results for the quarter ending September 2024, with an announcement scheduled for November 12. Analysts expect comScore to report a quarterly loss of $0.94 per share, indicating a decline of 135% year-over-year, along with predicted revenues of $86 million, reflecting a 5.5% drop from the previous year.
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Performant Financial Corporation (PFMT): Free Stock Analysis Report
comScore, Inc. (SCOR): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
