Here's What Analysts Are Forecasting For Evolent Health, Inc. (NYSE:EVH) After Its Third-Quarter Results
It's been a good week for Evolent Health, Inc. (NYSE:EVH) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.9% to US$4.58. Revenues came in at US$725m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$0.21 per share. 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. 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 14 analysts covering Evolent Health are now predicting revenues of US$3.30b in 2027. If met, this would reflect a major 41% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 87% to US$0.59. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.30b and losses of US$0.60 per share in 2027.
View our latest analysis for Evolent Health
As a result there was no major change to the consensus price target of US$5.92, implying that the business is trading roughly in line with expectations despite ongoing losses. 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 Evolent Health analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$3.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Evolent Health's past performance and to peers in the same industry. The analysts are definitely expecting Evolent Health's growth to accelerate, with the forecast 31% annualised growth to the end of 2027 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Evolent Health is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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 Evolent Health. 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 Evolent Health going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Evolent Health that you need to take into consideration.
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