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BrightSpring Health Services, Inc. (NASDAQ:BTSG) shareholders are probably feeling a little disappointed, since its shares fell 9.3% to US$17.48 in the week after its latest annual results. Things were not great overall, with a surprise (statutory) loss of US$0.09 per share on revenues of US$11b, even though the analysts had been expecting a profit. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for BrightSpring Health Services
Following the latest results, BrightSpring Health Services' 13 analysts are now forecasting revenues of US$11.9b in 2025. This would be a reasonable 5.7% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with BrightSpring Health Services forecast to report a statutory profit of US$0.43 per share. In the lead-up to this report, the analysts had been modelling revenues of US$11.9b and earnings per share (EPS) of US$0.41 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$24.68, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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 BrightSpring Health Services at US$30.00 per share, while the most bearish prices it at US$20.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 BrightSpring Health Services' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.7% 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 7.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than BrightSpring Health Services.