As you might know, Fidelity National Financial, Inc. (NYSE:FNF) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of US$3.0b arriving 8.2% ahead of forecasts. Statutory earnings per share (EPS) were US$1.29, 6.9% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fidelity National Financial after the latest results.
Taking into account the latest results, Fidelity National Financial's three analysts currently expect revenues in 2021 to be US$9.52b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 5.4% to US$3.75. In the lead-up to this report, the analysts had been modelling revenues of US$9.72b and earnings per share (EPS) of US$3.75 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$45.60, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Fidelity National Financial, with the most bullish analyst valuing it at US$52.00 and the most bearish at US$40.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Fidelity National Financial is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Fidelity National Financial's rate of growth is expected to accelerate meaningfully, with the forecast 1.5% revenue growth noticeably faster than its historical growth of 1.3%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.2% next year. It seems obvious that, while the future growth outlook is brighter than the recent past, Fidelity National Financial is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Fidelity National Financial's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$45.60, 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. At Simply Wall St, we have a full range of analyst estimates for Fidelity National Financial going out to 2022, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 3 warning signs for Fidelity National Financial that you need to be mindful of.
This article by Simply Wall St is general in nature. 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.
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