Hygeia Healthcare Holdings Co., Limited Just Missed EPS By 7.5%: Here's What Analysts Think Will Happen Next

Hygeia Healthcare Holdings Co., Limited (HKG:6078) just released its latest annual report and things are not looking great. Hygeia Healthcare Holdings missed analyst forecasts, with revenues of CN¥4.1b and statutory earnings per share (EPS) of CN¥1.08, falling short by 2.4% and 7.5% respectively. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Hygeia Healthcare Holdings

Taking into account the latest results, the current consensus from Hygeia Healthcare Holdings' 14 analysts is for revenues of CN¥5.67b in 2024. This would reflect a huge 39% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 32% to CN¥1.43. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.50b and earnings per share (EPS) of CN¥1.54 in 2024. So it's pretty clear consensus is mixed on Hygeia Healthcare Holdings after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

The analysts also cut Hygeia Healthcare Holdings' price target 7.9% to HK$55.76, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue. 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 Hygeia Healthcare Holdings at HK$76.95 per share, while the most bearish prices it at HK$39.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Hygeia Healthcare Holdings' growth to accelerate, with the forecast 39% annualised growth to the end of 2024 ranking favourably alongside historical growth of 32% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hygeia Healthcare Holdings to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hygeia Healthcare Holdings. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Hygeia Healthcare Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hygeia Healthcare Holdings analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Hygeia Healthcare Holdings 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.