Last week, you might have seen that Cannae Holdings, Inc. (NYSE:CNNE) released its second-quarter result to the market. The early response was not positive, with shares down 5.4% to US$19.13 in the past week. The results don't look great, especially considering that statutory losses grew 1,309% toUS$2.49 per share. Revenues of US$118m did beat expectations by 5.4%, but it looks like a bit of a cold comfort. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

After the latest results, the consensus from Cannae Holdings' three analysts is for revenues of US$429.7m in 2024, which would reflect a chunky 13% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 76% to US$1.80. Before this latest report, the consensus had been expecting revenues of US$436.3m and US$1.81 per share in losses.

The consensus price target was unchanged at US$28.00, suggesting that the business - losses and all - is executing in line with estimates. 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 Cannae Holdings analyst has a price target of US$31.00 per share, while the most pessimistic values it at US$26.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Cannae Holdings' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 24% to the end of 2024. This tops off a historical decline of 13% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.6% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Cannae Holdings to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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.

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 Cannae Holdings analysts - going out to 2025, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Cannae Holdings (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

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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.