Analysts Are Updating Their Huron Consulting Group Inc. (NASDAQ:HURN) Estimates After Its Third-Quarter Results

Huron Consulting Group Inc. (NASDAQ:HURN) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.9% to hit US$432m. Statutory earnings per share (EPS) came in at US$1.71, some 2.4% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the four analysts covering Huron Consulting Group are now predicting revenues of US$1.83b in 2026. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 17% to US$7.90. Before this earnings report, the analysts had been forecasting revenues of US$1.78b and earnings per share (EPS) of US$7.95 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

See our latest analysis for Huron Consulting Group

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$179, implying that the uplift in revenue is not expected to greatly contribute to Huron Consulting Group's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Huron Consulting Group at US$190 per share, while the most bearish prices it at US$165. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Huron Consulting Group is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Huron Consulting Group's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2026 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% per year. So it's pretty clear that, while Huron Consulting Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Huron Consulting Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Huron Consulting Group analysts - going out to 2027, 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 1 warning sign for Huron Consulting Group that you need to be mindful of.

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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.