Redcare Pharmacy NV (ETR:RDC) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates
There's been a notable change in appetite for Redcare Pharmacy NV (ETR:RDC) shares in the week since its third-quarter report, with the stock down 11% to €69.60. It was an okay report, and revenues came in at €847m, approximately in line with analyst estimates leading up to the results announcement. 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.
Taking into account the latest results, the current consensus from Redcare Pharmacy's nine analysts is for revenues of €3.87b in 2027. This would reflect a notable 16% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €3.85b and earnings per share (EPS) of €1.14 in 2027. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
Check out our latest analysis for Redcare Pharmacy
We'd also point out that thatthe analysts have made no major changes to their price target of €91.00. 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 Redcare Pharmacy analyst has a price target of €120 per share, while the most pessimistic values it at €72.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 Redcare Pharmacy's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2027 being well below the historical 25% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% annually. Even after the forecast slowdown in growth, it seems obvious that Redcare Pharmacy is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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.
At least one of Redcare Pharmacy's nine analysts has provided estimates out to 2028, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Redcare Pharmacy that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.