Earnings Beat: HireQuest, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
HireQuest, Inc. (NASDAQ:HQI) just released its latest full-year results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.2% to hit US$38m. HireQuest also reported a statutory profit of US$0.45, which was an impressive 36% above what the analyst had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
View our latest analysis for HireQuest
Following last week's earnings report, HireQuest's single analyst are forecasting 2024 revenues to be US$38.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 93% to US$0.89. Before this earnings report, the analyst had been forecasting revenues of US$36.7m and earnings per share (EPS) of US$0.85 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of US$22.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.
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 HireQuest's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HireQuest.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HireQuest's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$22.00, with the latest estimates not enough to have an impact on their price target.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for HireQuest you should know about.
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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.
