The dentalcorp Holdings Ltd. (TSE:DNTL) First-Quarter Results Are Out And Analysts Have Published New Forecasts

dentalcorp Holdings Ltd. (TSE:DNTL) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to CA$6.06 in the week after its latest first-quarter results. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on dentalcorp Holdings after the latest results.

Check out our latest analysis for dentalcorp Holdings

Following the latest results, dentalcorp Holdings' ten analysts are now forecasting revenues of CA$1.55b in 2024. This would be a modest 7.3% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 73% to CA$0.09. Before this latest report, the consensus had been expecting revenues of CA$1.56b and CA$0.073 per share in losses. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target held steady at CA$9.85, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values dentalcorp Holdings at CA$11.50 per share, while the most bearish prices it at CA$6.10. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await dentalcorp Holdings shareholders.

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. We would highlight that dentalcorp Holdings' revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.7% annually. So it's pretty clear that, while dentalcorp Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CA$9.85, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on dentalcorp Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for dentalcorp Holdings going out to 2025, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for dentalcorp Holdings that you need to be mindful 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.