New Forecasts: Here's What Analysts Think The Future Holds For Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD)

Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Skyward Specialty Insurance Group will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Skyward Specialty Insurance Group from its five analysts is for revenues of US$1.1b in 2024 which, if met, would be a substantial 31% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 32% to US$2.31. Prior to this update, the analysts had been forecasting revenues of US$941m and earnings per share (EPS) of US$2.20 in 2024. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Skyward Specialty Insurance Group

It will come as no surprise to learn that the analysts have increased their price target for Skyward Specialty Insurance Group 7.3% to US$33.57 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Skyward Specialty Insurance Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Skyward Specialty Insurance Group'shistorical trends, as the 24% annualised revenue growth to the end of 2024 is roughly in line with the 20% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.4% per year. So although Skyward Specialty Insurance Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Skyward Specialty Insurance Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Skyward Specialty Insurance Group analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.