It's been a good week for Regional Management Corp. (NYSE:RM) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.7% to US$31.01. Statutory earnings per share fell badly short of expectations, coming in at US$0.76, some 28% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$146m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Regional Management

Following the latest results, Regional Management's five analysts are now forecasting revenues of US$632.3m in 2025. This would be a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 143% to US$5.67. In the lead-up to this report, the analysts had been modelling revenues of US$623.8m and earnings per share (EPS) of US$5.40 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$36.67, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Regional Management analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$33.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Regional Management'shistorical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It's clear that while Regional Management's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Regional Management following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Regional Management going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Regional Management (1 makes us a bit uncomfortable!) that you should be aware of.

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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.