Employers Holdings, Inc. (NYSE:EIG) Released Earnings Last Week And Analysts Lifted Their Price Target To US$57.00

Simply Wall St.
22 Feb

Employers Holdings, Inc. (NYSE:EIG) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Employers Holdings reported in line with analyst predictions, delivering revenues of US$881m and statutory earnings per share of US$4.71, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Employers Holdings

NYSE:EIG Earnings and Revenue Growth February 22nd 2025

Following last week's earnings report, Employers Holdings' twin analysts are forecasting 2025 revenues to be US$886.2m, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 19% to US$3.88 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$895.7m and earnings per share (EPS) of US$3.78 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to US$57.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Employers Holdings' revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2025 being well below the historical 3.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Employers Holdings is also expected to grow slower than other industry participants.

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 Employers Holdings following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for Employers Holdings going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Employers 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.

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