F&G Annuities & Life, Inc. Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next
Shareholders might have noticed that F&G Annuities & Life, Inc. (NYSE:FG) filed its yearly result this time last week. The early response was not positive, with shares down 9.0% to US$40.55 in the past week. Revenues of US$4.5b beat expectations by 4.1%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of US$0.47 compared to previous analyst expectations of a profit. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for F&G Annuities & Life
Taking into account the latest results, the consensus forecast from F&G Annuities & Life's twin analysts is for revenues of US$5.25b in 2024. This reflects a notable 17% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with F&G Annuities & Life forecast to report a statutory profit of US$4.62 per share. Before this earnings report, the analysts had been forecasting revenues of US$5.21b and earnings per share (EPS) of US$4.64 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target fell 9.5% to US$43.00, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the F&G Annuities & Life's past performance and to peers in the same industry. We would highlight that F&G Annuities & Life's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% annually. So it's pretty clear that, while F&G Annuities & Life's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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, 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of F&G Annuities & Life's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Before you take the next step you should know about the 1 warning sign for F&G Annuities & Life that we have uncovered.
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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.
