Yatharth Hospital & Trauma Care Services Limited Just Recorded A 10% Revenue Beat: Here's What Analysts Think
The quarterly results for Yatharth Hospital & Trauma Care Services Limited (NSE:YATHARTH) were released last week, making it a good time to revisit its performance. Yatharth Hospital & Trauma Care Services beat revenue forecasts by a solid 10% to hit ₹3.9b. Statutory earnings per share came in at ₹18.20, in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Yatharth Hospital & Trauma Care Services' four analysts are now forecasting revenues of ₹17.0b in 2027. This would be a substantial 25% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 27% to ₹23.85. In the lead-up to this report, the analysts had been modelling revenues of ₹16.8b and earnings per share (EPS) of ₹25.13 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for Yatharth Hospital & Trauma Care Services
The consensus price target held steady at ₹1,052, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Yatharth Hospital & Trauma Care Services analyst has a price target of ₹1,100 per share, while the most pessimistic values it at ₹1,000. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yatharth Hospital & Trauma Care Services' past performance and to peers in the same industry. The analysts are definitely expecting Yatharth Hospital & Trauma Care Services' growth to accelerate, with the forecast 35% annualised growth to the end of 2027 ranking favourably alongside historical growth of 28% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Yatharth Hospital & Trauma Care Services is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yatharth Hospital & Trauma Care Services. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Yatharth Hospital & Trauma Care Services. Long-term earnings power is much more important than next year's profits. We have forecasts for Yatharth Hospital & Trauma Care Services going out to 2029, 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.