Analysts Are Updating Their Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) Estimates After Its Third-Quarter Results

As you might know, Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) recently reported its third-quarter numbers. It looks like the results were a bit of a negative overall. While revenues of ₹49b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.6% to hit ₹17.06 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Apollo Hospitals Enterprise

Taking into account the latest results, the current consensus from Apollo Hospitals Enterprise's 24 analysts is for revenues of ₹225.7b in 2025. This would reflect a sizeable 23% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 90% to ₹105. In the lead-up to this report, the analysts had been modelling revenues of ₹226.3b and earnings per share (EPS) of ₹107 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹6,252, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Apollo Hospitals Enterprise, with the most bullish analyst valuing it at ₹7,400 and the most bearish at ₹4,200 per share. 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 Apollo Hospitals Enterprise shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Apollo Hospitals Enterprise's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Apollo Hospitals Enterprise is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 ₹6,252, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Apollo Hospitals Enterprise analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Apollo Hospitals Enterprise 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.