Primerica, Inc. (NYSE:PRI) Third-Quarter Results Just Came Out: Here’s What Analysts Are Forecasting For Next Year
Primerica, Inc. (NYSE:PRI) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Primerica reported US$711m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.23 beat expectations, being 4.8% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Primerica
Following the latest results, Primerica’s six analysts are now forecasting revenues of US$2.94b in 2024. This would be an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to US$17.54. Before this earnings report, the analysts had been forecasting revenues of US$2.94b and earnings per share (EPS) of US$17.42 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.
There were no changes to revenue or earnings estimates or the price target of US$222, suggesting that the company has met expectations in its recent result. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Primerica analyst has a price target of US$260 per share, while the most pessimistic values it at US$190. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Primerica shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 3.2% growth on an annualised basis. This is compared to a historical growth rate of 9.3% 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 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Primerica is also expected to grow slower than other industry participants.
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. The consensus price target held steady at US$222, with the latest estimates not enough to have an impact on their price targets.
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 estimates – from multiple Primerica analysts – going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Primerica that we have uncovered.
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.
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Primerica, Inc. (NYSE:PRI) Third-Quarter Results Just Came Out: Here’s What Analysts Are Forecasting For Next Year
Primerica, Inc. (NYSE:PRI) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Primerica reported US$711m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.23 beat expectations, being 4.8% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Primerica
Following the latest results, Primerica’s six analysts are now forecasting revenues of US$2.94b in 2024. This would be an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to US$17.54. Before this earnings report, the analysts had been forecasting revenues of US$2.94b and earnings per share (EPS) of US$17.42 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.
There were no changes to revenue or earnings estimates or the price target of US$222, suggesting that the company has met expectations in its recent result. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Primerica analyst has a price target of US$260 per share, while the most pessimistic values it at US$190. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Primerica shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 3.2% growth on an annualised basis. This is compared to a historical growth rate of 9.3% 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 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Primerica is also expected to grow slower than other industry participants.
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. The consensus price target held steady at US$222, with the latest estimates not enough to have an impact on their price targets.
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 estimates – from multiple Primerica analysts – going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Primerica that we have uncovered.
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.
Hernán Porras Molina (Primerica)
