HealthCare Global Enterprises Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest second-quarter earnings release from HealthCare Global Enterprises Limited (NSE:HCG), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at ₹1.28, some 22% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹5.5b. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for HealthCare Global Enterprises

Taking into account the latest results, the consensus forecast from HealthCare Global Enterprises' eight analysts is for revenues of ₹23.1b in 2025. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 35% to ₹5.54. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.3b and earnings per share (EPS) of ₹5.31 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for HealthCare Global Enterprises 9.0% to ₹473on the back of these upgrades. 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. The most optimistic HealthCare Global Enterprises analyst has a price target of ₹550 per share, while the most pessimistic values it at ₹407. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that HealthCare Global Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. over the past five years. 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 HealthCare Global Enterprises is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HealthCare Global Enterprises following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

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 forecasts for HealthCare Global Enterprises going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with HealthCare Global Enterprises .

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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.