Yahoo Finance The Hartford Financial Services Group, Inc. Just Released Its Annual Results And Analysts Are Updating Their Estimates
As you might know, The Hartford Financial Services Group, Inc. (NYSE:HIG) recently reported its annual numbers. The result was positive overall - although revenues of US$21b were in line with what analysts predicted, Hartford Financial Services Group surprised by delivering a statutory profit of US$5.66 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
View our latest analysis for Hartford Financial Services Group
Taking into account the latest results, the latest consensus from Hartford Financial Services Group's eleven analysts is for revenues of US$21.2b in 2020, which would reflect an okay 2.4% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to decrease 7.1% to US$5.31 in the same period. Yet prior to the latest earnings, analysts had been forecasting revenues of US$21.3b and earnings per share (EPS) of US$5.40 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$65.00. 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. The most optimistic Hartford Financial Services Group analyst has a price target of US$70.00 per share, while the most pessimistic values it at US$57.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Next year brings more of the same, according to analysts, with revenue forecast to grow 2.4%, in line with its 2.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.7% per year. So it's pretty clear that Hartford Financial Services Group is forecast to grow substantially faster than its market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Hartford Financial Services Group's revenues are expected to grow faster than the wider market. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hartford Financial Services Group going out to 2022, and you can see them free on our platform here..
You can also view our analysis of Hartford Financial Services Group's balance sheet, and whether we think Hartford Financial Services Group is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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