Yahoo Finance Primerica, Inc. (NYSE:PRI) Just Released Its First-Quarter Earnings: Here's What Analysts Think
Last week saw the newest first-quarter earnings release from Primerica, Inc. (NYSE:PRI), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of US$743m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.7% to hit US$3.93 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Primerica
After the latest results, the five analysts covering Primerica are now predicting revenues of US$3.02b in 2024. If met, this would reflect a reasonable 2.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.2% to US$17.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.00b and earnings per share (EPS) of US$17.90 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$253. 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 Primerica analyst has a price target of US$275 per share, while the most pessimistic values it at US$235. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Primerica's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Primerica.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Primerica. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Primerica going out to 2026, and you can see them free on our platform here..
Even so, be aware that Primerica is showing 2 warning signs in our investment analysis , you should know about...
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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.
