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Investors in Victory Capital Holdings, Inc. (NASDAQ:VCTR) had a good week, as its shares rose 6.6% to close at US$70.58 following the release of its full-year results. Victory Capital Holdings reported in line with analyst predictions, delivering revenues of US$893m and statutory earnings per share of US$4.38, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Victory Capital Holdings after the latest results.
Check out our latest analysis for Victory Capital Holdings
Taking into account the latest results, the most recent consensus for Victory Capital Holdings from six analysts is for revenues of US$1.35b in 2025. If met, it would imply a substantial 51% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 16% to US$5.26. Before this earnings report, the analysts had been forecasting revenues of US$1.45b and earnings per share (EPS) of US$4.95 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.
There's been no real change to the average price target of US$71.33, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Victory Capital Holdings at US$88.00 per share, while the most bearish prices it at US$60.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 Victory Capital Holdings' growth to accelerate, with the forecast 51% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Victory Capital Holdings to grow faster than the wider industry.