Analysts Have Made A Financial Statement On Enact Holdings, Inc.'s (NASDAQ:ACT) First-Quarter Report

It's been a good week for Enact Holdings, Inc. (NASDAQ:ACT) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.1% to US$37.32. Results were roughly in line with estimates, with revenues of US$307m and statutory earnings per share of US$1.08. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following last week's earnings report, Enact Holdings' three analysts are forecasting 2025 revenues to be US$1.22b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 5.8% to US$4.31 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.23b and earnings per share (EPS) of US$4.35 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Enact Holdings

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$38.60. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Enact Holdings at US$41.00 per share, while the most bearish prices it at US$37.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enact Holdings' past performance and to peers in the same industry. We would highlight that Enact Holdings' revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2025 being well below the historical 2.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Enact Holdings.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$38.60, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Enact Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Enact Holdings going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Enact Holdings (of which 1 makes us a bit uncomfortable!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.