Yahoo Finance AXIS Capital Holdings Limited Recorded A 12% Miss On Revenue: Analysts Are Revisiting Their Models
AXIS Capital Holdings Limited (NYSE:AXS) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were US$1.6b, 12% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of US$2.01 being in line with what the analysts forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 AXIS Capital Holdings
Following the latest results, AXIS Capital Holdings' six analysts are now forecasting revenues of US$5.64b in 2023. This would be a meaningful 8.1% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 195% to US$7.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.64b and earnings per share (EPS) of US$7.74 in 2023. 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$67.33, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic AXIS Capital Holdings analyst has a price target of US$75.00 per share, while the most pessimistic values it at US$56.00. This is a very narrow spread of estimates, implying either that AXIS Capital Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting AXIS Capital Holdings' growth to accelerate, with the forecast 11% annualised growth to the end of 2023 ranking favourably alongside historical growth of 0.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AXIS Capital Holdings to grow faster than the wider industry.
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. The consensus price target held steady at US$67.33, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for AXIS Capital Holdings going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for AXIS Capital Holdings you should know about.
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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.
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