Analysts Have Made A Financial Statement On Unum Group's (NYSE:UNM) Yearly Report

The full-year results for Unum Group (NYSE:UNM) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of US$12b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.4% to hit US$6.50 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Unum Group

Taking into account the latest results, the current consensus from Unum Group's eight analysts is for revenues of US$12.9b in 2024. This would reflect a satisfactory 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 16% to US$7.70. In the lead-up to this report, the analysts had been modelling revenues of US$12.8b and earnings per share (EPS) of US$7.64 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$56.55. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Unum Group, with the most bullish analyst valuing it at US$64.00 and the most bearish at US$50.00 per share. This is a very narrow spread of estimates, implying either that Unum Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Unum Group's rate of growth is expected to accelerate meaningfully, with the forecast 4.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.7% annually. So it's clear that despite the acceleration in growth, Unum Group is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Unum Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$56.55, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Unum Group analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Unum Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.