Analysts Have Made A Financial Statement On BRP Group, Inc.'s (NASDAQ:BRP) Yearly Report
It's been a good week for BRP Group, Inc. (NASDAQ:BRP) shareholders, because the company has just released its latest yearly results, and the shares gained 5.6% to US$27.94. BRP Group reported revenues of US$1.2b, in line with expectations, but it unfortunately also reported (statutory) losses of US$1.50 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for BRP Group
Following the latest results, BRP Group's eight analysts are now forecasting revenues of US$1.38b in 2024. This would be a notable 14% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 67% to US$0.46. Before this latest report, the consensus had been expecting revenues of US$1.39b and US$0.20 per share in losses. So it's pretty clear the analysts have mixed opinions on BRP Group even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.
The consensus price target held steady at US$31.43, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on BRP Group, with the most bullish analyst valuing it at US$42.00 and the most bearish at US$27.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that BRP Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 49% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% per year. Even after the forecast slowdown in growth, it seems obvious that BRP Group is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at BRP Group. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for BRP Group going out to 2026, and you can see them free on our platform here..
It might also be worth considering whether BRP Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.
