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Earnings Miss: Entero Healthcare Solutions Limited Missed EPS By 29% And Analysts Are Revising Their Forecasts
Shareholders will be ecstatic, with their stake up 21% over the past week following Entero Healthcare Solutions Limited's (NSE:ENTERO) latest second-quarter results. Results overall were not great, with earnings of ₹10.45 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹21b and were slightly better than forecasts. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the four analysts covering Entero Healthcare Solutions are now predicting revenues of ₹82.7b in 2027. If met, this would reflect a notable 8.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 28% to ₹40.93. Before this earnings report, the analysts had been forecasting revenues of ₹82.7b and earnings per share (EPS) of ₹40.93 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Entero Healthcare Solutions
There were no changes to revenue or earnings estimates or the price target of ₹1,844, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Entero Healthcare Solutions analyst has a price target of ₹2,132 per share, while the most pessimistic values it at ₹1,590. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Entero Healthcare Solutions' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2027 being well below the historical 25% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% annually. Factoring in the forecast slowdown in growth, it looks like Entero Healthcare Solutions is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹1,844, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Entero Healthcare Solutions analysts - going out to 2029, and you can see them free on our platform here.
You can also view our analysis of Entero Healthcare Solutions' balance sheet, and whether we think Entero Healthcare Solutions is carrying too much debt, for free on our platform here.
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