eHealth, Inc. (NASDAQ:EHTH) Just Reported, And Analysts Assigned A US$8.36 Price Target

eHealth, Inc. (NASDAQ:EHTH) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The statutory results were mixed overall, with revenues of US$453m in line with analyst forecasts, but losses of US$2.37 per share, some 2.7% larger than the analysts were predicting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for eHealth

Taking into account the latest results, the most recent consensus for eHealth from four analysts is for revenues of US$464.3m in 2024. If met, it would imply a credible 2.5% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 10% from last year to US$2.11. Before this latest report, the consensus had been expecting revenues of US$459.0m and US$2.28 per share in losses. 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.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 8.2% to US$8.36. It looks likethe analysts have become less optimistic about the overall business. 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 eHealth, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$5.00 per share. 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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 2.5% growth on an annualised basis. That is in line with its 2.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.9% per year. So although eHealth is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of eHealth's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on eHealth. Long-term earnings power is much more important than next year's profits. We have forecasts for eHealth going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for eHealth you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.