Skyward Specialty Insurance Group, Inc. Just Recorded A 46% EPS Beat: Here's What Analysts Are Forecasting Next

Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.0% to hit US$265m. Skyward Specialty Insurance Group also reported a statutory profit of US$0.90, which was an impressive 46% above 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Skyward Specialty Insurance Group

Taking into account the latest results, the consensus forecast from Skyward Specialty Insurance Group's six analysts is for revenues of US$1.09b in 2024. This reflects a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 4.9% to US$2.54 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.07b and earnings per share (EPS) of US$2.51 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$43.50, implying that the uplift in revenue is not expected to greatly contribute to Skyward Specialty Insurance Group's valuation in the near term. 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 Skyward Specialty Insurance Group analyst has a price target of US$47.00 per share, while the most pessimistic values it at US$37.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 highlight that Skyward Specialty Insurance Group's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 41% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. So it's pretty clear that, while Skyward Specialty Insurance Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$43.50, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Skyward Specialty Insurance Group analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Skyward Specialty Insurance Group .

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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.