The HireRight Holdings Corporation (NYSE:HRT) First-Quarter Results Are Out And Analysts Have Published New Forecasts

As you might know, HireRight Holdings Corporation (NYSE:HRT) recently reported its first-quarter numbers. Revenues of US$173m arrived in line with expectations, although statutory losses per share were US$0.05, an impressive 29% smaller than what broker models predicted. The 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for HireRight Holdings

Taking into account the latest results, the consensus forecast from HireRight Holdings' six analysts is for revenues of US$750.6m in 2024. This reflects a reasonable 4.3% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with HireRight Holdings forecast to report a statutory profit of US$0.28 per share. In the lead-up to this report, the analysts had been modelling revenues of US$759.0m and earnings per share (EPS) of US$0.25 in 2024. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$13.34, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values HireRight Holdings at US$15.00 per share, while the most bearish prices it at US$11.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 can infer from the latest estimates that forecasts expect a continuation of HireRight Holdings'historical trends, as the 5.8% annualised revenue growth to the end of 2024 is roughly in line with the 5.4% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.7% annually. It's clear that while HireRight Holdings' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HireRight Holdings' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$13.34, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for HireRight Holdings going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for HireRight Holdings that you should be aware 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.