Pure Health Holding PJSC (ADX:PUREHEALTH) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Pure Health Holding PJSC (ADX:PUREHEALTH) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to د.إ2.79 in the week after its latest first-quarter results. It was a credible result overall, with revenues of د.إ6.6b and statutory earnings per share of د.إ0.15 both in line with analyst estimates, showing that Pure Health Holding PJSC is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pure Health Holding PJSC after the latest results.

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Taking into account the latest results, the current consensus from Pure Health Holding PJSC's three analysts is for revenues of د.إ28.7b in 2025. This would reflect a solid 9.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 30% to د.إ0.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ30.0b and earnings per share (EPS) of د.إ0.20 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

View our latest analysis for Pure Health Holding PJSC

The average price target was steady at د.إ4.50even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Pure Health Holding PJSC, with the most bullish analyst valuing it at د.إ6.05 and the most bearish at د.إ3.20 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's pretty clear that there is an expectation that Pure Health Holding PJSC's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 42% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like Pure Health Holding PJSC is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at د.إ4.50, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Pure Health Holding PJSC going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.