Stock Analysis

International General Insurance Holdings Ltd. Just Recorded A 46% EPS Beat: Here's What Analysts Are Forecasting Next

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NasdaqCM:IGIC
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International General Insurance Holdings Ltd. (NASDAQ:IGIC) shareholders are probably feeling a little disappointed, since its shares fell 3.7% to US$7.45 in the week after its latest quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$115m, statutory earnings beat expectations by a notable 46%, coming in at US$0.35 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for International General Insurance Holdings

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NasdaqCM:IGIC Earnings and Revenue Growth March 6th 2022

After the latest results, the one analyst covering International General Insurance Holdings are now predicting revenues of US$664.1m in 2022. If met, this would reflect a substantial 80% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 35% to US$1.20. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$587.7m and earnings per share (EPS) of US$1.10 in 2022. Sentiment certainly seems to have improved after the latest results, with a nice increase in revenue and a modest lift to earnings per share estimates.

As a result, it might be a surprise to see thatthe analyst has cut their price target 9.1% to US$10.00, which could suggest the forecast improvement in performance is not expected to last.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting International General Insurance Holdings' growth to accelerate, with the forecast 60% annualised growth to the end of 2022 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that International General Insurance Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards International General Insurance Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on International General Insurance Holdings. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for International General Insurance Holdings you should be aware of.

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