Industry Analysts Just Made A Meaningful Upgrade To Their Employers Holdings, Inc. (NYSE:EIG) Revenue Forecasts
Employers Holdings, Inc. (NYSE:EIG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
Following the upgrade, the consensus from dual analysts covering Employers Holdings is for revenues of US$682m in 2020, implying a definite 9.0% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$597m of revenue in 2020. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.
Check out our latest analysis for Employers Holdings
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with the forecast 9.0% revenue decline a notable change from historical growth of 1.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Employers Holdings is expected to lag the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Employers Holdings this year. They also expect company revenue to perform worse than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Employers Holdings.
Analysts are definitely bullish on Employers Holdings, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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