Yahoo Finance Here's What Analysts Are Forecasting For Evolent Health, Inc. (NYSE:EVH) After Its Annual Results
Shareholders of Evolent Health, Inc. (NYSE:EVH) will be pleased this week, given that the stock price is up 10% to US$34.07 following its latest yearly results. Revenues were in line with expectations, at US$2.0b, while statutory losses ballooned to US$1.28 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the 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 see what the analysts are expecting for next year.
Check out our latest analysis for Evolent Health
Taking into account the latest results, the most recent consensus for Evolent Health from twelve analysts is for revenues of US$2.46b in 2024. If met, it would imply a huge 25% increase on its revenue over the past 12 months. Evolent Health is also expected to turn profitable, with statutory earnings of US$0.039 per share. Before this earnings report, the analysts had been forecasting revenues of US$2.32b and earnings per share (EPS) of US$0.21 in 2024. So it's pretty clear the analysts have mixed opinions on Evolent Health after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.
There's been no major changes to the price target of US$44.83, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. Currently, the most bullish analyst values Evolent Health at US$63.00 per share, while the most bearish prices it at US$34.00. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Evolent Health's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 21% p.a. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Evolent Health. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
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. At Simply Wall St, we have a full range of analyst estimates for Evolent Health going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - Evolent Health has 2 warning signs we think you should be aware of.
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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.
