Earnings Update: Thyrocare Technologies Limited (NSE:THYROCARE) Just Reported And Analysts Are Boosting Their Estimates

Investors in Thyrocare Technologies Limited (NSE:THYROCARE) had a good week, as its shares rose 8.5% to close at ₹1,149 following the release of its quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.5b, statutory earnings were in line with expectations, at ₹16.71 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Thyrocare Technologies after the latest results.

Check out our latest analysis for Thyrocare Technologies

Taking into account the latest results, the current consensus from Thyrocare Technologies' five analysts is for revenues of ₹5.25b in 2021, which would reflect a sizeable 25% increase on its sales over the past 12 months. Statutory earnings per share are predicted to shoot up 85% to ₹24.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹4.66b and earnings per share (EPS) of ₹13.87 in 2021. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

It will come as no surprise to learn that the analysts have increased their price target for Thyrocare Technologies 47% to ₹1,002on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Thyrocare Technologies at ₹1,146 per share, while the most bearish prices it at ₹875. This is a very narrow spread of estimates, implying either that Thyrocare Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Thyrocare Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 25% revenue growth noticeably faster than its historical growth of 7.2%p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Thyrocare Technologies to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Thyrocare Technologies' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 in mind, we wouldn't be too quick to come to a conclusion on Thyrocare Technologies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Thyrocare Technologies analysts - going out to 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Thyrocare Technologies you should be aware of.

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