Yahoo Finance Brokers Are Upgrading Their Views On Guild Holdings Company (NYSE:GHLD) With These New Forecasts
Guild Holdings Company (NYSE:GHLD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 7.5% over the past week, closing at US$15.03. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
After the upgrade, the five analysts covering Guild Holdings are now predicting revenues of US$1.1b in 2024. If met, this would reflect a substantial 26% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 226% to US$1.42. Prior to this update, the analysts had been forecasting revenues of US$928m and earnings per share (EPS) of US$1.15 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Guild Holdings
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Guild Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 36% annualised growth until the end of 2024. If achieved, this would be a much better result than the 35% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.7% annually. Not only are Guild Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Guild Holdings' future.
Analysts are definitely bullish on Guild Holdings, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 1 other concern we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
