Horace Mann Educators Corporation (NYSE:HMN) Just Reported And Analysts Have Been Lifting Their Price Targets
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It's been a pretty great week for Horace Mann Educators Corporation (NYSE:HMN) shareholders, with its shares surging 13% to US$42.64 in the week since its latest third-quarter results. Results were roughly in line with estimates, with revenues of US$412m and statutory earnings per share of US$0.83. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Horace Mann Educators
Following the latest results, Horace Mann Educators' four analysts are now forecasting revenues of US$1.74b in 2025. This would be a notable 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 45% to US$3.71. In the lead-up to this report, the analysts had been modelling revenues of US$1.73b and earnings per share (EPS) of US$3.64 in 2025. 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.
The consensus price target rose 5.1% to US$41.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Horace Mann Educators' earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Horace Mann Educators analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$39.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Horace Mann Educators is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Horace Mann Educators' rate of growth is expected to accelerate meaningfully, with the forecast 7.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Horace Mann Educators to grow faster than the wider industry.