HireQuest, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

HireQuest, Inc. (NASDAQ:HQI) just released its yearly report and things are looking bullish. The company beat forecasts, with revenue of US$38m, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.45, 36% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for HireQuest

Taking into account the latest results, HireQuest's single analyst currently expect revenues in 2024 to be US$38.2m, approximately in line with the last 12 months. Per-share earnings are expected to bounce 93% to US$0.89. Before this earnings report, the analyst had been forecasting revenues of US$36.7m and earnings per share (EPS) of US$0.85 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of US$22.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HireQuest's past performance and to peers in the same industry. We would highlight that HireQuest's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2024 being well below the historical 25% 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 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that HireQuest is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HireQuest's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for HireQuest going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for HireQuest that you need to take into consideration.

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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.