Stock Analysis

HealthCare Global Enterprises Limited Just Missed EPS By 79%: Here's What Analysts Think Will Happen Next

NSEI:HCG
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HealthCare Global Enterprises Limited (NSE:HCG) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹4.7b, statutory earnings missed forecasts by an incredible 79%, coming in at just ₹0.41 per share. 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 HealthCare Global Enterprises

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NSEI:HCG Earnings and Revenue Growth February 11th 2024

After the latest results, the nine analysts covering HealthCare Global Enterprises are now predicting revenues of ₹22.0b in 2025. If met, this would reflect a solid 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 231% to ₹8.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.0b and earnings per share (EPS) of ₹9.51 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at ₹417, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on HealthCare Global Enterprises, with the most bullish analyst valuing it at ₹470 and the most bearish at ₹355 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. It's clear that while HealthCare Global Enterprises' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 2026, and you can see them free on our platform here.

You can also see whether HealthCare Global Enterprises is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.