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Vitalhub Corp. (CVE:VHI) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Vitalhub Corp. (CVE:VHI) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.7% to CA$3.34. Revenues of CA$5.3m beat expectations by a respectable 3.1%, although statutory losses per share increased. Vitalhub lost CA$0.01, which was 100% more than what the analysts had included in their models. 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.

See our latest analysis for Vitalhub

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earnings-and-revenue-growth

Following the latest results, Vitalhub's five analysts are now forecasting revenues of CA$24.0m in 2021. This would be a substantial 47% improvement in sales compared to the last 12 months. Statutory losses are forecast to balloon 92% to CA$0.005 per share. In the lead-up to this report, the analysts had been modelling revenues of CA$23.3m and earnings per share (EPS) of CA$0.013 in 2021. Yet despite a slight bump in revenues, the analysts are now forecasting a loss instead of a profit, which looks like a reduction in sentiment after the latest results.

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There was no major change to the consensus price target of CA$4.68, with growing revenues seemingly enough to offset the concern of growing losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Vitalhub analyst has a price target of CA$5.00 per share, while the most pessimistic values it at CA$4.15. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Vitalhub's rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 51% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 31% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vitalhub is expected to grow much faster than its industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Vitalhub dropped from profits to a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at CA$4.68, 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. At Simply Wall St, we have a full range of analyst estimates for Vitalhub going out to 2022, and you can see them free on our platform here..

Even so, be aware that Vitalhub is showing 1 warning sign in our investment analysis , you should know about...

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.