Enact Holdings, Inc. (NASDAQ:ACT) 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. Revenues of US$313m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.15, missing estimates by 3.2%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Enact Holdings' five analysts is for revenues of US$1.28b in 2027. This reflects a satisfactory 2.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.2% to US$5.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.28b and earnings per share (EPS) of US$5.09 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 Enact Holdings
There were no changes to revenue or earnings estimates or the price target of US$47.20, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Enact Holdings at US$51.00 per share, while the most bearish prices it at US$42.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 Enact Holdings' revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2027 being well below the historical 3.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Enact Holdings.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Enact Holdings' revenue is expected to perform worse 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.
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 Enact 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 Enact Holdings (1 doesn't sit too well with us!) that we have uncovered.
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