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Kinsale Capital Group, Inc. (NYSE:KNSL) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.2% to hit US$418m. Kinsale Capital Group also reported a statutory profit of US$4.90, which was an impressive 30% above what the analysts had 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kinsale Capital Group after the latest results.
See our latest analysis for Kinsale Capital Group
After the latest results, the nine analysts covering Kinsale Capital Group are now predicting revenues of US$1.86b in 2025. If met, this would reflect a huge 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.8% to US$18.06. Before this earnings report, the analysts had been forecasting revenues of US$1.88b and earnings per share (EPS) of US$17.81 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 analysts reconfirmed their price target of US$447, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Kinsale Capital Group at US$500 per share, while the most bearish prices it at US$416. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Kinsale Capital Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% annually. Even after the forecast slowdown in growth, it seems obvious that Kinsale Capital Group is also expected to grow faster than the wider industry.