A week ago, Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.5% to hit US$537m. Pangaea Logistics Solutions reported statutory earnings per share (EPS) US$0.63, which was a notable 14% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Pangaea Logistics Solutions

Taking into account the latest results, the current consensus from Pangaea Logistics Solutions' dual analysts is for revenues of US$662.7m in 2025. This would reflect a huge 24% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 96% to US$0.87. Before this earnings report, the analysts had been forecasting revenues of US$556.2m and earnings per share (EPS) of US$0.76 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$9.38, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. The analysts are definitely expecting Pangaea Logistics Solutions' growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 2.9% per year. It seems obvious that as part of the brighter growth outlook, Pangaea Logistics Solutions is expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Pangaea Logistics Solutions' earnings potential next year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Pangaea Logistics Solutions (1 makes us a bit uncomfortable!) that you need to take into consideration.

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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.