1Life Healthcare, Inc. (NASDAQ:ONEM) Released Earnings Last Week And Analysts Lifted Their Price Target To US$54.00

1Life Healthcare, Inc. (NASDAQ:ONEM) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues and losses per share both beat expectations, with revenues of US$380m leading estimates by 4.2%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.75 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for 1Life Healthcare

After the latest results, the ten analysts covering 1Life Healthcare are now predicting revenues of US$479.7m in 2021. If met, this would reflect a huge 26% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 20% from last year to US$0.60. Before this earnings announcement, the analysts had been modelling revenues of US$476.5m and losses of US$0.61 per share in 2021. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

These new estimates led to the consensus price target rising 9.7% to US$54.00, with lower forecast losses suggesting things could be looking up for 1Life Healthcare. 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 1Life Healthcare analyst has a price target of US$64.00 per share, while the most pessimistic values it at US$40.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 26%, in line with its 24% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.9% per year. So it's pretty clear that 1Life Healthcare is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.

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 1Life Healthcare analysts - going out to 2023, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with 1Life Healthcare .

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