Redcare Pharmacy NV (ETR:RDC) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Investors in Redcare Pharmacy NV (ETR:RDC) had a good week, as its shares rose 2.9% to close at €127 following the release of its full-year results. Revenues came in at €2.4b, in line with expectations, while statutory losses per share were substantially higher than expected, at €2.27 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Redcare Pharmacy

After the latest results, the twelve analysts covering Redcare Pharmacy are now predicting revenues of €2.96b in 2025. If met, this would reflect a huge 25% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 60% to €0.90. Before this latest report, the consensus had been expecting revenues of €2.96b and €0.83 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a modest increase to its losses per share forecasts.

The consensus price target held steady at €165, 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. There are some variant perceptions on Redcare Pharmacy, with the most bullish analyst valuing it at €214 and the most bearish at €93.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for 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 Redcare Pharmacy's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Redcare Pharmacy'shistorical trends, as the 25% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.9% annually. So although Redcare Pharmacy is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Redcare Pharmacy. Long-term earnings power is much more important than next year's profits. We have forecasts for Redcare Pharmacy going out to 2027, and you can see them free on our platform here.

You can also see whether Redcare Pharmacy is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.