Analysts Are Updating Their Cannae Holdings, Inc. (NYSE:CNNE) Estimates After Its Third-Quarter Results

Shareholders might have noticed that Cannae Holdings, Inc. (NYSE:CNNE) filed its third-quarter result this time last week. The early response was not positive, with shares down 2.6% to US$20.43 in the past week. It looks like a positive result overall, with revenues of US$114m beating forecasts by 7.8%. Statutory losses of US$0.22 per share were roughly in line with what the analysts had forecast. 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. 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 Cannae Holdings

Taking into account the latest results, the three analysts covering Cannae Holdings provided consensus estimates of US$450.4m revenue in 2025, which would reflect a noticeable 2.5% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 78% to US$1.12. Before this earnings announcement, the analysts had been modelling revenues of US$451.8m and losses of US$0.73 per share in 2025. So it's pretty clear the analysts have mixed opinions on Cannae Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

The consensus price target held steady at US$28.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cannae Holdings analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$27.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would also point out that the forecast 2.0% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 12% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Cannae Holdings to suffer worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Cannae Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cannae Holdings' revenue is expected to perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Cannae Holdings going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Cannae Holdings that we have uncovered.

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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.