The DocMorris AG (VTX:DOCM) Yearly Results Are Out And Analysts Have Published New Forecasts

There's been a notable change in appetite for DocMorris AG (VTX:DOCM) shares in the week since its annual report, with the stock down 19% to CHF16.60. DocMorris reported revenues of CHF1.0b, in line with expectations, but it unfortunately also reported (statutory) losses of CHF8.25 per share, which were slightly larger than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for DocMorris

Following the latest results, DocMorris' ten analysts are now forecasting revenues of CHF1.21b in 2025. This would be a decent 19% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 20% from last year to CHF6.62. Before this latest report, the consensus had been expecting revenues of CHF1.22b and CHF6.27 per share in losses. So it's pretty clear consensus is mixed on DocMorris after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

As a result, there was no major change to the consensus price target of CHF35.60, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic DocMorris analyst has a price target of CHF60.00 per share, while the most pessimistic values it at CHF20.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DocMorris' past performance and to peers in the same industry. One thing stands out from these estimates, which is that DocMorris is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2025. If achieved, this would be a much better result than the 11% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.0% annually. Not only are DocMorris' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at DocMorris. 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 CHF35.60, 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. We have estimates - from multiple DocMorris analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with DocMorris (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

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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.