Cannae Holdings, Inc. (NYSE:CNNE) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?
The analysts might have been a bit too bullish on Cannae Holdings, Inc. (NYSE:CNNE), given that the company fell short of expectations when it released its yearly results last week. The numbers were fairly weak, with revenue of US$570m missing analyst predictions by 3.2%, and (statutory) losses of US$4.18 per share being slightly larger than what the analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Cannae Holdings
Following the recent earnings report, the consensus from three analysts covering Cannae Holdings is for revenues of US$503.9m in 2024. This implies a definite 12% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 91% to US$0.38. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$617.9m and losses of US$0.79 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.
There was no major change to the US$27.33average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cannae Holdings, with the most bullish analyst valuing it at US$31.00 and the most bearish at US$25.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. We would also point out that the forecast 12% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 14% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.0% per year. So while a broad number of companies are forecast to grow, unfortunately Cannae Holdings is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$27.33, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Cannae Holdings going out to 2025, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our 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.
