As you might know, CNA Financial Corporation (NYSE:CNA) recently reported its quarterly numbers. The result was positive overall - although revenues of US$3.3b were in line with what the analysts predicted, CNA Financial surprised by delivering a statutory profit of US$0.95 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for CNA Financial
Taking into account the latest results, the consensus forecast from CNA Financial's dual analysts is for revenues of US$14.2b in 2024. This reflects a solid 10.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 3.3% to US$4.60 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$14.0b and earnings per share (EPS) of US$4.65 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of US$41.00, suggesting that the company has met expectations in its recent result.
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 clear from the latest estimates that CNA Financial's rate of growth is expected to accelerate meaningfully, with the forecast 7.9% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CNA Financial is expected to grow much faster than its industry.
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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$41.00, with the latest estimates not enough to have an impact on their price targets.
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 2024, which can be seen for free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with CNA Financial .
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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.