Paragon Care Limited (ASX:PGC) Yearly Results: Here's What Analysts Are Forecasting For This Year
Paragon Care Limited (ASX:PGC) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were pretty good overall. While revenues of AU$3.7b were in line with analyst predictions, statutory losses were much smaller than expected, with Paragon Care losing AU$0.0097 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Paragon Care's two analysts are now forecasting revenues of AU$3.76b in 2027. This would be a credible 2.2% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Paragon Care forecast to report a statutory profit of AU$0.018 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$3.74b and earnings per share (EPS) of AU$0.018 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.
Check out our latest analysis for Paragon Care
It will come as no surprise then, to learn that the consensus price target is largely unchanged at AU$0.25.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Paragon Care's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Paragon Care is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Paragon Care going out as far as 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Paragon Care that you need to take into consideration.
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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.