Max Healthcare Institute Limited Just Missed EPS By 21%: Here's What Analysts Think Will Happen Next

As you might know, Max Healthcare Institute Limited (NSE:MAXHEALTH) last week released its latest quarterly, and things did not turn out so great for shareholders. Unfortunately, Max Healthcare Institute delivered a serious earnings miss. Revenues of ₹17b were 17% below expectations, and statutory earnings per share of ₹2.88 missed estimates by 21%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Max Healthcare Institute

Taking into account the latest results, the consensus forecast from Max Healthcare Institute's 16 analysts is for revenues of ₹81.2b in 2025. This reflects a huge 35% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 34% to ₹14.65. Before this earnings report, the analysts had been forecasting revenues of ₹80.1b and earnings per share (EPS) of ₹15.04 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.9% to ₹1,014, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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 Max Healthcare Institute analyst has a price target of ₹1,251 per share, while the most pessimistic values it at ₹560. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Max Healthcare Institute's past performance and to peers in the same industry. The analysts are definitely expecting Max Healthcare Institute's growth to accelerate, with the forecast 83% annualised growth to the end of 2025 ranking favourably alongside historical growth of 26% 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 18% 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 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

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

We also provide an overview of the Max Healthcare Institute Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.