Silvercrest Asset Management Group Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a good week for Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) shareholders, because the company has just released its latest yearly results, and the shares gained 6.0% to US$16.85. It looks like a credible result overall - although revenues of US$132m were what the analysts expected, Silvercrest Asset Management Group surprised by delivering a (statutory) profit of US$1.52 per share, an impressive 22% above what was forecast. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Silvercrest Asset Management Group
After the latest results, the three analysts covering Silvercrest Asset Management Group are now predicting revenues of US$146.1m in 2022. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 97% to US$1.97. In the lead-up to this report, the analysts had been modelling revenues of US$147.3m and earnings per share (EPS) of US$1.15 in 2022. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target rose 6.3% to US$22.67, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Silvercrest Asset Management Group, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$21.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Silvercrest Asset Management Group's growth to accelerate, with the forecast 11% annualised growth to the end of 2022 ranking favourably alongside historical growth of 8.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.03% per year. It seems obvious that as part of the brighter growth outlook, Silvercrest Asset Management Group is expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Silvercrest Asset Management Group following these results. On the plus side, they made no changes to their revenue estimates - and they expect sales to perform better than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Silvercrest Asset Management Group going out to 2024, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Silvercrest Asset Management Group , and understanding this should be part of your investment process.
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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.
