NextGen Healthcare, Inc. Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

NextGen Healthcare, Inc. (NASDAQ:NXGN) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.7% to hit US$178m. NextGen Healthcare reported statutory earnings per share (EPS) US$0.09, which was a notable 16% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for NextGen Healthcare

After the latest results, the eight analysts covering NextGen Healthcare are now predicting revenues of US$718.6m in 2024. If met, this would reflect a satisfactory 6.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 1,501% to US$0.56. In the lead-up to this report, the analysts had been modelling revenues of US$717.9m and earnings per share (EPS) of US$0.57 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$20.00, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values NextGen Healthcare at US$25.00 per share, while the most bearish prices it at US$16.00. 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 NextGen Healthcare shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting NextGen Healthcare's growth to accelerate, with the forecast 8.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. So it's clear that despite the acceleration in growth, NextGen Healthcare is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple NextGen Healthcare analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with NextGen Healthcare .

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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.