Nephrocare Health Services Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
The quarterly results for Nephrocare Health Services Limited (NSE:NEPHROPLUS) were released last week, making it a good time to revisit its performance. Statutory earnings per share of ₹3.11 unfortunately missed expectations by 12%, although it was encouraging to see revenues of ₹2.8b exceed expectations by 4.3%. 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.
Taking into account the latest results, the current consensus from Nephrocare Health Services' four analysts is for revenues of ₹12.1b in 2027. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 86% to ₹15.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹11.8b and earnings per share (EPS) of ₹16.26 in 2027. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a meaningful to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
See our latest analysis for Nephrocare Health Services
Curiously, the consensus price target rose 6.6% to ₹823. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. 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. The most optimistic Nephrocare Health Services analyst has a price target of ₹1,000 per share, while the most pessimistic values it at ₹725. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Nephrocare Health Services' revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2027 being well below the historical 28% growth over the last year. Compare this to the 91 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 18% per year. So it's pretty clear that, while Nephrocare Health Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Nephrocare Health Services will grow in line with the overall 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Nephrocare Health Services. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nephrocare Health Services going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Nephrocare Health Services' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.