Results: Neighbourly Pharmacy Inc. Delivered A Surprise Loss And Now Analysts Have New Forecasts

It's been a good week for Neighbourly Pharmacy Inc. (TSE:NBLY) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.0% to CA$23.70. Revenues of CA$265m beat expectations by 2.2%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of CA$0.20 compared to previous analyst expectations of a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Neighbourly Pharmacy

After the latest results, the eight analysts covering Neighbourly Pharmacy are now predicting revenues of CA$951.3m in 2024. If met, this would reflect a sizeable 42% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Neighbourly Pharmacy forecast to report a statutory profit of CA$0.43 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$939.2m and earnings per share (EPS) of CA$0.47 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at CA$29.61, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Neighbourly Pharmacy at CA$36.00 per share, while the most bearish prices it at CA$22.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 31% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.8% per year. So it's pretty clear that Neighbourly Pharmacy is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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. We have estimates - from multiple Neighbourly Pharmacy analysts - going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Neighbourly Pharmacy that we have uncovered.

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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.