HireQuest, Inc. (NASDAQ:HQI) just released its latest full-year results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.2% to hit US$38m. HireQuest also reported a statutory profit of US$0.45, which was an impressive 36% above what the analyst had forecast. The analyst 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 estimate suggests is in store for next year.

Taking into account the latest results, HireQuest's one analyst currently expect revenues in 2024 to be US$38.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 93% to US$0.89. Before this earnings report, the analyst had been forecasting revenues of US$36.7m and earnings per share (EPS) of US$0.85 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analyst has not made any major changes to their price target of US$22.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that HireQuest's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 25% 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 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that HireQuest is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HireQuest's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at US$22.00, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that HireQuest is showing 3 warning signs in our investment analysis , you should know about...

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