Earnings Miss: Max Healthcare Institute Limited Missed EPS By 24% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Max Healthcare Institute Limited (NSE:MAXHEALTH), given that the company fell short of expectations when it released its full-year results last week. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹70b missed by 17%, and statutory earnings per share of ₹11.01 fell short of forecasts by 24%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Max Healthcare Institute's 23 analysts is for revenues of ₹108.0b in 2026. This reflects a substantial 54% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 71% to ₹18.97. Before this earnings report, the analysts had been forecasting revenues of ₹107.2b and earnings per share (EPS) of ₹19.30 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Max Healthcare Institute

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,196. 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 Max Healthcare Institute, with the most bullish analyst valuing it at ₹1,398 and the most bearish at ₹614 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Max Healthcare Institute's growth to accelerate, with the forecast 54% annualised growth to the end of 2026 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Max Healthcare Institute to grow faster than the wider industry.

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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹1,196, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Max Healthcare Institute. Long-term earnings power is much more important than next year's profits. We have forecasts for Max Healthcare Institute going out to 2028, and you can see them free on our platform here.

You can also view our analysis of Max Healthcare Institute's balance sheet, and whether we think Max Healthcare Institute is carrying too much debt, 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.