Metropolis Healthcare Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Metropolis Healthcare Limited (NSE:METROPOLIS) released its full-year result to the market. The early response was not positive, with shares down 2.2% to ₹1,627 in the past week. It was not a great result overall. While revenues of ₹13b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 10% to hit ₹28.15 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Metropolis Healthcare's 15 analysts are now forecasting revenues of ₹16.5b in 2026. This would be a major 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 39% to ₹38.91. In the lead-up to this report, the analysts had been modelling revenues of ₹16.8b and earnings per share (EPS) of ₹42.64 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Metropolis Healthcare

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,959, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Metropolis Healthcare analyst has a price target of ₹2,740 per share, while the most pessimistic values it at ₹1,400. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Metropolis Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Metropolis Healthcare 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. 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 ₹1,959, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Metropolis Healthcare analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.