Results: The Hanover Insurance Group, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

In This Article:

Last week saw the newest quarterly earnings release from The Hanover Insurance Group, Inc. (NYSE:THG), an important milestone in the company's journey to build a stronger business. Hanover Insurance Group reported US$1.7b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.80 beat expectations, being 6.6% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Hanover Insurance Group

earnings-and-revenue-growth
NYSE:THG Earnings and Revenue Growth November 3rd 2024

After the latest results, the six analysts covering Hanover Insurance Group are now predicting revenues of US$6.39b in 2025. If met, this would reflect a reasonable 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 34% to US$13.57. In the lead-up to this report, the analysts had been modelling revenues of US$6.40b and earnings per share (EPS) of US$13.48 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$169, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hanover Insurance Group analyst has a price target of US$177 per share, while the most pessimistic values it at US$155. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Hanover Insurance Group is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Hanover Insurance Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 5.9% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hanover Insurance Group is also expected to grow slower than other industry participants.

Waiting for permission
Allow microphone access to enable voice search

Try again.