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Analysts Are Updating Their HireRight Holdings Corporation (NYSE:HRT) Estimates After Its Yearly Results

HireRight Holdings Corporation (NYSE:HRT) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results look positive overall; while revenues of US$722m were in line with analyst predictions, statutory losses were 8.6% smaller than expected, with HireRight Holdings losing US$0.16 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for HireRight Holdings

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Taking into account the latest results, the consensus forecast from HireRight Holdings' seven analysts is for revenues of US$759.0m in 2024. This reflects a credible 5.1% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with HireRight Holdings forecast to report a statutory profit of US$0.28 per share. In the lead-up to this report, the analysts had been modelling revenues of US$757.6m and earnings per share (EPS) of US$0.25 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

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There's been no major changes to the consensus price target of US$12.87, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic HireRight Holdings analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$11.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that HireRight Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 9.3% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that HireRight Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HireRight Holdings following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for HireRight Holdings going out to 2026, and you can see them free on our platform here..

Even so, be aware that HireRight Holdings is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.