NMI Holdings, Inc. (NASDAQ:NMIH) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

NMI Holdings, Inc. (NASDAQ:NMIH) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to US$29.05 in the week after its latest annual results. It was a credible result overall, with revenues of US$579m and statutory earnings per share of US$3.84 both in line with analyst estimates, showing that NMI Holdings is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NMI Holdings after the latest results.

See our latest analysis for NMI Holdings

Taking into account the latest results, the most recent consensus for NMI Holdings from eight analysts is for revenues of US$634.4m in 2024. If met, it would imply a solid 9.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.8% to US$4.09. Before this earnings report, the analysts had been forecasting revenues of US$632.9m and earnings per share (EPS) of US$4.07 in 2024. 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.

The analysts reconfirmed their price target of US$35.33, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on NMI Holdings, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$33.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that NMI Holdings' revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2024 being well below the historical 12% 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 4.0% annually. So it's pretty clear that, while NMI Holdings' 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$35.33, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple NMI Holdings analysts - going out to 2025, and you can see them free on our platform here.

Even so, be aware that NMI Holdings is showing 1 warning sign in our investment analysis , you should know about...

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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.