It's been a pretty great week for Onity Group Inc. (NYSE:ONIT) shareholders, with its shares surging 12% to US$36.99 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of US$250m were what the analysts expected, Onity Group surprised by delivering a (statutory) profit of US$2.50 per share, an impressive 49% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Onity Group's three analysts is for revenues of US$1.03b in 2025. This would reflect a satisfactory 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 198% to US$9.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.04b and earnings per share (EPS) of US$8.14 in 2025. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Onity Group

The consensus price target was unchanged at US$44.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Onity Group analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$40.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Onity Group's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Onity Group to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Onity Group's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Onity Group going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Onity Group has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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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.