shareholders of Evolent Health Co., Ltd. (NYSE:EVH) should be happy this week, as its stock price rose 10% to US$34.07 following its latest annual results. Sales were in line with expectations at US$2 billion, but statutory losses rose to US$1.28 per share. Earnings earnings are an important time for investors as they can track a company’s performance, see what analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to find out what analysts are expecting for next year.
Check out our latest analysis for Evolent Health.
Taking into account the latest results, the latest consensus for Evolent Health from 12 analysts is for revenue of US$2.46b in 2024. If this is met, it would represent a significant 25% increase in revenue over the past 12 months. Evolent Health is also expected to be profitable, with statutory profit of $0.039 per share. Prior to this earnings report, analysts had predicted 2024 revenue of US$2.32 billion and earnings per share (EPS) of US$0.21. So it’s clear that analysts have a mixed opinion on Evolent Health following the latest results. Even though sales increased, earnings per share forecasts were slashed at the expense of higher sales.
The $44.83 price target remains unchanged, suggesting that the impact of the expected sales increase and profit decline will not result in a material change to the business’ valuation. The consensus price target is just the average of the individual analyst targets, so it’s useful to see how wide the range of underlying forecasts is. Currently, the most bullish analyst values Evolent Health at $63.00 per share, while the most bearish values it at $34.00. Note the wide spread in analyst price targets. This means that there is a fairly wide range of possible scenarios for the underlying business.
There are also ways to look at the bigger picture, such as how these forecasts compare to past performance and whether forecasts are more or less bullish compared to peers. The latest forecasts show that Evolent Health’s growth rate is expected to accelerate significantly, with its projected revenue growth of 25% per annum to the end of 2024, significantly faster than the 21% annual growth rate over the past five years. is. Compare this to other companies in the same industry, whose revenues are forecast to grow 11% per year. Considering the expected earnings acceleration, it’s clear that Evolent Health is expected to grow much faster than its industry.
conclusion
The biggest concern is that analysts have cut their earnings per share estimates, suggesting business headwinds may be ahead for Evolent Health. Happily, they’ve also revised up their revenue forecasts, predicting it to grow faster than the broader industry. There was no actual change to the consensus target price, suggesting that the intrinsic value of the business has not changed significantly at the latest estimate.
Based on this idea, we think the long-term outlook for the business is far more relevant than next year’s earnings. At Simply Wall St, we have all analyst forecasts for Evolent Health out to 2026, available for free on our platform here.
For example, Evolent Health requires you to be aware of the risks. two warning signs I think you should know.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
