Analysts Are Updating Their CM Hospitalar S/A (BVMF:VVEO3) Estimates After Its Annual Results

It's been a mediocre week for CM Hospitalar S/A (BVMF:VVEO3) shareholders, with the stock dropping 12% to R$6.15 in the week since its latest full-year results. It was an okay result overall, with revenues coming in at R$11b, roughly what the analysts had been expecting. 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.

View our latest analysis for CM Hospitalar S/A

After the latest results, the seven analysts covering CM Hospitalar S/A are now predicting revenues of R$12.4b in 2024. If met, this would reflect a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 6.9% to R$1.05 in the same period. In the lead-up to this report, the analysts had been modelling revenues of R$12.2b and earnings per share (EPS) of R$1.07 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$16.73. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values CM Hospitalar S/A at R$26.00 per share, while the most bearish prices it at R$7.60. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. It's pretty clear that there is an expectation that CM Hospitalar S/A's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.5% per year. So it's pretty clear that, while CM Hospitalar S/A's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at R$16.73, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CM Hospitalar S/A going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 5 warning signs for CM Hospitalar S/A (2 make us uncomfortable) you should be aware of.

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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.