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It's been a pretty great week for SelectQuote, Inc. (NYSE:SLQT) shareholders, with its shares surging 17% to US$2.34 in the week since its latest quarterly results. The results don't look great, especially considering that statutory losses grew 32% toUS$0.26 per share. Revenues of US$292m did beat expectations by 6.0%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for SelectQuote
Following the latest results, SelectQuote's three analysts are now forecasting revenues of US$1.44b in 2025. This would be an okay 4.4% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 39% to US$0.17. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.44b and losses of US$0.15 per share in 2025. While this year's revenue estimates held steady, there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Despite expectations of heavier losses next year,the analysts have lifted their price target 13% to US$4.50, perhaps implying these losses are not expected to be recurring over the long term. 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 SelectQuote analyst has a price target of US$5.00 per share, while the most pessimistic values it at US$4.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SelectQuote's past performance and to peers in the same industry. We would highlight that SelectQuote's revenue growth is expected to slow, with the forecast 6.0% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.2% annually. So it's pretty clear that, while SelectQuote's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.