Revenue Beat: Neptune Insurance Holdings Inc. Beat Analyst Estimates By 5.7%
Neptune Insurance Holdings Inc. (NYSE:NP) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to US$28.44 in the week after its latest quarterly results. Results overall were respectable, with statutory earnings of US$0.12 per share roughly in line with what the analysts had forecast. Revenues of US$60m came in 5.7% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Neptune Insurance Holdings' ten analysts are now forecasting revenues of US$241.4m in 2027. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 52% to US$0.49. In the lead-up to this report, the analysts had been modelling revenues of US$237.6m and earnings per share (EPS) of US$0.49 in 2027. 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.
Check out our latest analysis for Neptune Insurance Holdings
There were no changes to revenue or earnings estimates or the price target of US$34.27, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Neptune Insurance Holdings at US$39.00 per share, while the most bearish prices it at US$31.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Neptune Insurance Holdings is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Neptune Insurance Holdings' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2027 being well below the historical 28% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.5% per year. So it's pretty clear that, while Neptune Insurance Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Neptune Insurance Holdings going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Neptune Insurance Holdings (1 doesn't sit too well with us!) that we have uncovered.
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