Investors in Enact Holdings, Inc. (NASDAQ:ACT) had a good week, as its shares rose 7.1% to close at US$37.32 following the release of its first-quarter results. Results were roughly in line with estimates, with revenues of US$307m and statutory earnings per share of US$1.08. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Enact Holdings after the latest results.

We've discovered 3 warning signs about Enact Holdings. View them for free.NasdaqGS:ACT Earnings and Revenue Growth May 4th 2025

Taking into account the latest results, Enact Holdings' three analysts currently expect revenues in 2025 to be US$1.22b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 5.8% to US$4.31 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.23b and earnings per share (EPS) of US$4.35 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.

View our latest analysis for Enact Holdings

The analysts reconfirmed their price target of US$38.60, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Enact Holdings analyst has a price target of US$41.00 per share, while the most pessimistic values it at US$37.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Enact Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Enact Holdings' revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2025 being well below the historical 2.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Enact Holdings is also expected to grow slower than other industry participants.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Enact Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$38.60, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Enact Holdings analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified  3 warning signs for Enact Holdings (1 is significant)  you should be aware of.

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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.

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