Earnings Beat: Aster DM Healthcare Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Aster DM Healthcare Limited (NSE:ASTERDM) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.4% to hit ₹37b. Aster DM Healthcare also reported a statutory profit of ₹3.60, which was an impressive 157% above what the analysts had forecast. 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. 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 Aster DM Healthcare

Following the latest results, Aster DM Healthcare's five analysts are now forecasting revenues of ₹156.1b in 2025. This would be a solid 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 134% to ₹15.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹151.5b and earnings per share (EPS) of ₹15.10 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

The analysts increased their price target 6.4% to ₹447, perhaps signalling that higher revenues are a strong leading indicator for Aster DM Healthcare's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Aster DM Healthcare, with the most bullish analyst valuing it at ₹480 and the most bearish at ₹425 per share. This is a very narrow spread of estimates, implying either that Aster DM Healthcare is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Aster DM Healthcare'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So although Aster DM Healthcare is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for Aster DM Healthcare going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Aster DM Healthcare you should be aware of, and 1 of them is significant.

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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.