Fidelis Insurance Holdings Limited Just Beat EPS By 35%: Here's What Analysts Think Will Happen Next

Simply Wall St.
16 Nov 2024

Fidelis Insurance Holdings Limited (NYSE:FIHL) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 3.3% to hit US$686m. Fidelis Insurance Holdings also reported a statutory profit of US$0.88, which was an impressive 35% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Fidelis Insurance Holdings

NYSE:FIHL Earnings and Revenue Growth November 16th 2024

After the latest results, the six analysts covering Fidelis Insurance Holdings are now predicting revenues of US$2.76b in 2025. If met, this would reflect a meaningful 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 14% to US$3.58 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.74b and earnings per share (EPS) of US$3.47 in 2025. So the consensus seems to have become somewhat more optimistic on Fidelis Insurance Holdings' earnings potential following these results.

The consensus price target was unchanged at US$21.61, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Fidelis Insurance Holdings, with the most bullish analyst valuing it at US$26.00 and the most bearish at US$19.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fidelis Insurance Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Fidelis Insurance Holdings'historical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% annually. So although Fidelis Insurance Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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 Fidelis Insurance Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$21.61, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Fidelis Insurance Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Fidelis Insurance Holdings analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Fidelis Insurance Holdings that you need to take into consideration.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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