F&G Annuities & Life, Inc. (NYSE:FG) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were mixed, with revenue coming in 34% at US$1.6b, yet statutory earnings came up 19% short, at US$0.88 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on F&G Annuities & Life after the latest results.

View our latest analysis for F&G Annuities & Life

Taking into account the latest results, the consensus forecast from F&G Annuities & Life's dual analysts is for revenues of US$5.95b in 2024. This reflects a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 130% to US$4.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.24b and earnings per share (EPS) of US$4.62 in 2024. While revenue forecasts have increased substantially, the analysts are a little more pessimistic on earnings, suggesting that the growth does not come without cost.

The consensus price target fell 9.5% to US$43.00, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

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. It's pretty clear that there is an expectation that F&G Annuities & Life's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% per year. Even after the forecast slowdown in growth, it seems obvious that F&G Annuities & Life is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of F&G Annuities & Life's future valuation.

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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You still need to take note of risks, for example - F&G Annuities & Life has 1 warning sign we think you should be aware of.

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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.