Forecast: Analysts Think Guild Holdings Company's (NYSE:GHLD) Business Prospects Have Improved Drastically

Celebrations may be in order for Guild Holdings Company (NYSE:GHLD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Investor sentiment seems to be improving too, with the share price up 7.5% to US$15.03 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Guild Holdings' five analysts is for revenues of US$1.1b in 2024, which would reflect a substantial 26% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 226% to US$1.42. Before this latest update, the analysts had been forecasting revenues of US$928m and earnings per share (EPS) of US$1.15 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Guild Holdings

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Guild Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 36% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 35% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.7% annually. So it looks like Guild Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Guild Holdings.

Analysts are definitely bullish on Guild Holdings, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.