National Bank Financial Adjusts Earnings Forecast for Fairfax Financial Holdings

On November 4th, 2024, Fairfax Financial Holdings Limited (TSE:FFH) received an update from investment analysts at National Bank Financial. They have revised their earnings per share (EPS) estimates for FY2024 due to recent market assessments. The updated forecast by National Bank Financial analyst J. Gloyn estimates that Fairfax Financial is expected to achieve earnings of C$208.38 per share for the year, down slightly from the previous estimate of C$208.81.

In contrast, the current consensus estimate among analysts for Fairfax Financial's full-year earnings remains higher at C$212.30 per share. National Bank Financial also commented on anticipated earnings for future quarters, projecting Q3 2025 earnings at C$51.39 per share and FY2026 earnings at C$230.90 per share.

Recent Earnings Release

Fairfax Financial previously released its quarterly earnings results on August 1st, where it reported earnings of C$50.87 per share. This result fell short of the consensus estimate of C$51.23 per share by C$0.36. For the quarter, the company generated C$10.25 billion in revenue, achieving a return on equity of 17.91% and a net margin of 12.27%.

Analyst Ratings and Price Targets

Several analysts have provided new insights regarding Fairfax Financial's stock. National Bankshares increased their price target for the company from C$2,100.00 to C$2,200.00, maintaining an "outperform" rating in their report published on October 30th. In addition, Scotiabank raised its target price from C$1,950.00 to C$2,000.00 in a report dated July 24th, while the Royal Bank of Canada also upped their target from C$1,325.00 to C$1,425.00, reiterating an "outperform" rating in their report dated October 3rd.

Stock Performance

As of the latest trading session, shares of Fairfax Financial opened at C$1,888.04, reflecting a steady performance in the market. The stock has shown a 52-week range, reaching a low of C$1,152.53 and a high of C$1,888.04. Currently, the company boasts a market capitalization of C$44.01 billion and maintains a price-to-earnings ratio of 8.41, with a price-to-earnings-growth ratio of 0.27.

Insider Transactions

In related news, there has been some insider trading activity at Fairfax Financial. Senior Officer Olivier Elie Quesnel sold 173 shares of stock on August 15th, resulting in a transaction valued at approximately C$270,940.49 at an average price of C$1,566.13 per share. Following this sale, Quesnel holds 202 shares worth about C$316,358.26.

Additionally, Director F. Brian Bradstreet sold 500 shares on September 11th, which amounted to a total of C$814,500.00 at an average price of C$1,629.00. In recent months, insiders have sold a total of 6,953 shares worth approximately $11,304,176, representing about 3.76% ownership of the company’s stock.

About Fairfax Financial

Fairfax Financial Holdings Limited is a diversified company that offers property and casualty insurance, reinsurance, and investment management services across the globe. Its operations are segmented into Property and Casualty Insurance and Reinsurance, Life Insurance, and Non-Insurance Companies.

Financial, Earnings, Stocks