Yahoo Finance Regional Management Corp. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
As you might know, Regional Management Corp. (NYSE:RM) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$144m, some 3.0% above estimates, and statutory earnings per share (EPS) coming in at US$1.56, 78% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Regional Management after the latest results.
Check out our latest analysis for Regional Management
Taking into account the latest results, the consensus forecast from Regional Management's four analysts is for revenues of US$586.8m in 2024. This reflects a decent 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 88% to US$4.27. In the lead-up to this report, the analysts had been modelling revenues of US$583.3m and earnings per share (EPS) of US$3.92 in 2024. So the consensus seems to have become somewhat more optimistic on Regional Management's earnings potential following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.8% to US$30.33. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Regional Management analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$28.00. This is a very narrow spread of estimates, implying either that Regional Management is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Regional Management'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. So although Regional Management is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Regional Management's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Regional Management 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 4 warning signs for Regional Management (1 shouldn't be ignored!) that we have uncovered.
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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.
