The NFI Group Inc. (TSE:NFI) Full-Year Results Are Out And Analysts Have Published New Forecasts
NFI Group Inc. (TSE:NFI) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to CA$12.04 in the week after its latest full-year results. It was a moderately negative result overall - revenue fell 3.1% short of analyst estimates at US$2.7b, although at least statutory losses were marginally smaller than expected, at US$1.48 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for NFI Group
Following the latest results, NFI Group's five analysts are now forecasting revenues of US$3.40b in 2024. This would be a substantial 27% improvement in revenue compared to the last 12 months. NFI Group is also expected to turn profitable, with statutory earnings of US$0.65 per share. Before this earnings report, the analysts had been forecasting revenues of US$3.42b and earnings per share (EPS) of US$0.45 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.
There's been no major changes to the consensus price target of CA$15.39, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on NFI Group, with the most bullish analyst valuing it at CA$17.98 and the most bearish at CA$12.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. For example, we noticed that NFI Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 27% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.3% annually. Not only are NFI Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NFI Group's earnings potential next year. 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 held steady at CA$15.39, 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 NFI Group going out to 2025, 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 2 warning signs for NFI Group that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
