Revenue Miss: Max Healthcare Institute Limited Fell 21% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Max Healthcare Institute Limited (NSE:MAXHEALTH) just released its latest third-quarter report and things are not looking great. Earnings missed the mark, with revenues of ₹13b coming up 21% short, and statutory earnings per share of ₹2.97 missing estimates by 13%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Max Healthcare Institute

Following the latest results, Max Healthcare Institute's 16 analysts are now forecasting revenues of ₹81.8b in 2025. This would be a major 57% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 48% to ₹16.15. In the lead-up to this report, the analysts had been modelling revenues of ₹81.1b and earnings per share (EPS) of ₹15.67 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 12% to ₹779. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Max Healthcare Institute analyst has a price target of ₹930 per share, while the most pessimistic values it at ₹465. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Max Healthcare Institute shareholders.

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. It's clear from the latest estimates that Max Healthcare Institute's rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 28% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Max Healthcare Institute 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 Max Healthcare Institute 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for Max Healthcare Institute going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Max Healthcare Institute's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.