Earnings Miss: Fortis Healthcare Limited Missed EPS By 7.1% And Analysts Are Revising Their Forecasts
Fortis Healthcare Limited (NSE:FORTIS) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of ₹25b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹3.53, missing estimates by 7.1%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 19 analysts covering Fortis Healthcare are now predicting revenues of ₹107.0b in 2027. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 29% to ₹17.92. In the lead-up to this report, the analysts had been modelling revenues of ₹106.4b and earnings per share (EPS) of ₹18.14 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Fortis Healthcare
The analysts reconfirmed their price target of ₹1,114, 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. The most optimistic Fortis Healthcare analyst has a price target of ₹1,192 per share, while the most pessimistic values it at ₹975. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's clear from the latest estimates that Fortis Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Fortis Healthcare is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Fortis Healthcare going out to 2029, and you can see them free on our platform here..
It might also be worth considering whether Fortis Healthcare's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.