Analysts Have Been Trimming Their Cannae Holdings, Inc. (NYSE:CNNE) Price Target After Its Latest Report

It's been a sad week for Cannae Holdings, Inc. (NYSE:CNNE), who've watched their investment drop 10% to US$15.99 in the week since the company reported its quarterly result. Revenues of US$107m beat expectations by a respectable 2.0%, although statutory losses per share increased. Cannae Holdings lost US$1.25, which was 324% more than what the analysts had included in their models. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the recent earnings report, the consensus from two analysts covering Cannae Holdings is for revenues of US$404.0m in 2026. This implies a discernible 6.1% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to US$1.81. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$415.5m and losses of US$1.42 per share in 2026. While next year's revenue estimates dropped there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Cannae Holdings

The average price target fell 6.8% to US$20.50, implicitly signalling that lower earnings per share are a leading indicator for Cannae Holdings' valuation.

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 also point out that the forecast 4.9% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 9.6% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.5% annually. So while a broad number of companies are forecast to grow, unfortunately Cannae Holdings is expected to see its revenue affected worse than other companies in the 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Cannae Holdings' future valuation.

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

It is also worth noting that we have found 2 warning signs for Cannae Holdings (1 is potentially serious!) that you need to take into consideration.

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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.