Revenue Beat: Entero Healthcare Solutions Limited Beat Analyst Estimates By 9.0%

Last week, you might have seen that Entero Healthcare Solutions Limited (NSE:ENTERO) released its second-quarter result to the market. The early response was not positive, with shares down 8.1% to ₹1,381 in the past week. Results overall were respectable, with statutory earnings of ₹10.81 per share roughly in line with what the analysts had forecast. Revenues of ₹13b came in 9.0% ahead of analyst predictions. 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 Entero Healthcare Solutions

After the latest results, the three analysts covering Entero Healthcare Solutions are now predicting revenues of ₹53.2b in 2025. If met, this would reflect a major 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 80% to ₹29.59. Before this earnings report, the analysts had been forecasting revenues of ₹56.2b and earnings per share (EPS) of ₹31.56 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of ₹1,566, suggesting the downgrades are not expected to have a long-term impact on Entero Healthcare Solutions' valuation. 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 Entero Healthcare Solutions analyst has a price target of ₹1,680 per share, while the most pessimistic values it at ₹1,428. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Entero Healthcare Solutions' growth to accelerate, with the forecast 45% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Entero Healthcare Solutions is expected to grow much faster than its industry.

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 downgraded Entero Healthcare Solutions' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,566, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Entero Healthcare Solutions going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Entero Healthcare Solutions' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.