Chartwell Retirement Residences (TSE:CSH.UN) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Last week, you might have seen that Chartwell Retirement Residences (TSE:CSH.UN) released its third-quarter result to the market. The early response was not positive, with shares down 4.5% to CA$19.74 in the past week. It was a credible result overall, with revenues of CA$282m and statutory earnings per share of CA$0.086 both in line with analyst estimates, showing that Chartwell Retirement Residences is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Chartwell Retirement Residences' four analysts is for revenues of CA$1.30b in 2026. This would reflect a sizeable 24% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 196% to CA$0.25. Before this earnings report, the analysts had been forecasting revenues of CA$1.27b and earnings per share (EPS) of CA$0.22 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.

Check out our latest analysis for Chartwell Retirement Residences

There's been no major changes to the consensus price target of CA$21.94, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Chartwell Retirement Residences at CA$24.00 per share, while the most bearish prices it at CA$21.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Chartwell Retirement Residences' growth to accelerate, with the forecast 19% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.8% 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 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Chartwell Retirement Residences is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Chartwell Retirement Residences following these results. 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Chartwell Retirement Residences going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Chartwell Retirement Residences (1 is significant!) that you need to take into consideration.

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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.