Revenue Miss: Blue Jet Healthcare Limited Fell 13% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Last week, you might have seen that Blue Jet Healthcare Limited (NSE:BLUEJET) released its quarterly result to the market. The early response was not positive, with shares down 6.3% to ₹476 in the past week. Revenues were ₹1.6b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹2.18 being in line with what the analysts forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Blue Jet Healthcare after the latest results.

See our latest analysis for Blue Jet Healthcare

Taking into account the latest results, the current consensus from Blue Jet Healthcare's three analysts is for revenues of ₹9.65b in 2025. This would reflect a huge 39% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 42% to ₹12.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹10.0b and earnings per share (EPS) of ₹13.32 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The average price target climbed 29% to ₹523despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Blue Jet Healthcare, with the most bullish analyst valuing it at ₹545 and the most bearish at ₹425 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Blue Jet Healthcare is forecast to grow faster in the future than it has in the past, with revenues expected to display 55% annualised growth until the end of 2025. If achieved, this would be a much better result than the 8.1% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. So it looks like Blue Jet Healthcare is expected to grow faster than its competitors, at least for a while.

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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Blue Jet Healthcare analysts - going out to 2027, 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.