It's been a good week for HCI Group, Inc. (NYSE:HCI) shareholders, because the company has just released its latest yearly results, and the shares gained 4.7% to US$44.53. It was an okay result overall, with revenues coming in at US$242m, roughly what analysts had been expecting. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Following the latest results, HCI Group's two analysts are now forecasting revenues of US$276.2m in 2020. This would be a solid 14% improvement in sales compared to the last 12 months. Before this earnings result, analysts had predicted US$248.4m revenue in 2020, although there was no accompanying EPS estimate. The consensus has definitely become more optimistic, providing a nice gain to its revenue forecasts following the recent results.
The average analyst price target rose 6.3% to US$51.00, with analysts clearly having become more optimistic about HCI Group's prospects following these results.
In addition, we can look to HCI Group's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. For example, we noticed that HCI Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 14%, well above its historical decline of 4.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 1.2% per year. Although HCI Group's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.
The Bottom Line
Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
We have estimates for HCI Group from its two analysts , and you can see them free on our platform here.
We also provide an overview of the HCI Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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