The first-quarter results for Crawford & Company (NYSE:CRD.B) were released last week, making it a good time to revisit its performance. Sales of US$253m surpassed estimates by 4.7%, although statutory earnings per share missed badly, coming in 24% below expectations at US$0.11 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Crawford

Following the latest results, Crawford's three analysts are now forecasting revenues of US$1.03b in 2021. This would be a satisfactory 4.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to swell 19% to US$0.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$998.4m and earnings per share (EPS) of US$0.49 in 2021. So it seems there's been a definite increase in optimism about Crawford's future following the latest results, with a massive increase in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 33% to US$12.00per share.

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 thing stands out from these estimates, which is that Crawford is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.1% annualised growth until the end of 2021. If achieved, this would be a much better result than the 3.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.9% per year. So it looks like Crawford is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Crawford's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Crawford. Long-term earnings power is much more important than next year's profits. We have forecasts for Crawford going out to 2022, and you can see them free on our platform here.

You still need to take note of risks, for example - Crawford has 3 warning signs we think you should be aware of.

This article by Simply Wall St is general in nature. 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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