Yahoo Finance Vitalhub Corp. Just Beat Revenue Estimates By 6.8%
Vitalhub Corp. (TSE:VHI) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were respectable, with statutory earnings of CA$0.04 per share roughly in line with what the analysts had forecast. Revenues of CA$15m came in 6.8% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Vitalhub
Taking into account the latest results, the most recent consensus for Vitalhub from five analysts is for revenues of CA$63.5m in 2024. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 38% to CA$0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$59.7m and earnings per share (EPS) of CA$0.17 in 2024. So it's pretty clear the analysts have mixed opinions on Vitalhub after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.
The consensus price target was unchanged at CA$7.83, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Vitalhub at CA$8.50 per share, while the most bearish prices it at CA$7.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 pretty clear that there is an expectation that Vitalhub's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 39% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. So it's pretty clear that, while Vitalhub's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Vitalhub. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Vitalhub going out to 2025, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Vitalhub 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.
