Fortis Healthcare Limited (NSE:FORTIS) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Fortis Healthcare Limited (NSE:FORTIS) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to ₹489 in the week after its latest first-quarter results. It was a credible result overall, with revenues of ₹19b and statutory earnings per share of ₹7.93 both in line with analyst estimates, showing that Fortis Healthcare is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Fortis Healthcare

After the latest results, the 13 analysts covering Fortis Healthcare are now predicting revenues of ₹78.5b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 24% to ₹10.73. In the lead-up to this report, the analysts had been modelling revenues of ₹78.5b and earnings per share (EPS) of ₹10.86 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹535, showing that the business is executing well and in line with expectations. 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 Fortis Healthcare at ₹595 per share, while the most bearish prices it at ₹482. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fortis Healthcare's past performance and to peers in the same industry. The analysts are definitely expecting Fortis Healthcare's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 17% per year. Fortis Healthcare 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹535, 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 Fortis Healthcare analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Fortis Healthcare's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.