P10, Inc. Surpasses Earnings Estimates: What Lies Ahead?

P10, Inc. (PX) reported quarterly earnings of $0.26 per share, surpassing the Zacks Consensus Estimate of $0.20 per share. This marks an increase from earnings of $0.20 per share a year ago. These earnings figures have been adjusted for non-recurring items.

The latest report shows an earnings surprise of 30%. A quarter earlier, analysts predicted earnings of $0.20 per share, but P10 delivered $0.24 per share, resulting in a surprise of 20%.

Over the past four quarters, the company has exceeded consensus EPS estimates three times.

P10, part of the Zacks Financial – Miscellaneous Services industry, generated revenues of $74.24 million for the quarter ending in September 2024. This amount is 10.08% above the Zacks Consensus Estimate and represents a year-over-year growth from $58.94 million. The company has also beaten consensus revenue estimates three out of the last four quarters.

The sustainability of P10’s stock price movement, following these results and future earnings expectations, will largely hinge on management’s insights during the earnings call.

Year-to-date, P10 shares have risen approximately 11.8%, while the S&P 500 has increased by 24.3%.

What’s Next for P10?

Despite underperforming the market this year, investors are curious about P10’s future performance.

While there are no easy answers, earnings forecasts can provide valuable insights. These forecasts include current consensus earnings expectations for upcoming quarters and any recent changes to those expectations.

Research indicates a strong link between short-term stock behavior and trends in earnings estimate revisions. Investors can track these revisions independently or utilize a reliable tool like the Zacks Rank, known for effectively capturing the implications of earnings estimate changes.

Ahead of this earnings release, P10’s revision trends appear favorable. However, the recent earnings report may alter this outlook. Currently, P10 holds a Zacks Rank #1 (Strong Buy), suggesting the stock may outperform the market soon.

It will be interesting to monitor how estimates for the upcoming quarters and current fiscal year evolve. The consensus EPS estimate stands at $0.21 on revenues of $69.35 million for the next quarter and $0.86 on $274.56 million in revenues for the entire current fiscal year.

Investors should also consider how the overall industry outlook may influence P10’s performance. The Zacks Industry Rank indicates that Financial – Miscellaneous Services is situated within the top 31% of more than 250 industries. Historical data shows that the top-ranked industries tend to outperform the lower echelons by a ratio of more than 2 to 1.

In the same industry, Sphere 3D Corp. (ANY) has not yet reported its results for the quarter ending September 2024.

Sphere 3D is expected to report a quarterly loss of $0.19 per share, reflecting a 50% year-over-year change. The consensus EPS estimate for this quarter has remained steady over the last month.

Revenues for Sphere 3D are anticipated to be $5 million, representing a 12.6% decrease from the same quarter last year.

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This particular company focuses on the millennial and Gen Z demographics, achieving nearly $1 billion in revenue last quarter. A recent drop in stock price presents an ideal opportunity for investors. While not every pick has succeeded, this one could outperform prior Zacks recommendations like Nano-X Imaging, which surged by 129.6% in less than 9 months.

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P10, Inc. (PX): Free Stock Analysis Report

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The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.