Yahoo Finance Results: NMI Holdings, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Investors in NMI Holdings, Inc. (NASDAQ:NMIH) had a good week, as its shares rose 5.4% to close at US$32.47 following the release of its quarterly results. The result was positive overall - although revenues of US$156m were in line with what the analysts predicted, NMI Holdings surprised by delivering a statutory profit of US$1.08 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for NMI Holdings
Taking into account the latest results, the most recent consensus for NMI Holdings from seven analysts is for revenues of US$639.9m in 2024. If met, it would imply a modest 6.9% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$4.26, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$632.6m and earnings per share (EPS) of US$4.10 in 2024. So the consensus seems to have become somewhat more optimistic on NMI Holdings' earnings potential following these results.
There's been no major changes to the consensus price target of US$36.38, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic NMI Holdings analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$33.00. 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.
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 NMI Holdings'historical trends, as the 9.3% annualised revenue growth to the end of 2024 is roughly in line with the 11% 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 4.1% per year. So it's pretty clear that NMI Holdings is forecast to grow substantially faster than its industry.
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 NMI Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 NMI Holdings. 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 NMI Holdings going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for NMI 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.
