Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) investors will be delighted, with the company turning in some strong numbers with its latest results. 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. 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.

Following the latest results, Pangaea Logistics Solutions' two analysts are now forecasting revenues of US$662.7m in 2025. This would be a substantial 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 96% to US$0.87. In the lead-up to this report, the analysts had been modelling 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. It's clear from the latest estimates that Pangaea Logistics Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.5% p.a. 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Pangaea Logistics Solutions following these results. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. The consensus price target held steady at US$9.38, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Pangaea Logistics Solutions. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Pangaea Logistics Solutions is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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