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Shareholders in Spire Healthcare Group plc (LON:SPI) had a terrible week, as shares crashed 23% to UK£1.75 in the week since its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of UK£1.5b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 37% to hit UK£0.062 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Spire Healthcare Group
After the latest results, the seven analysts covering Spire Healthcare Group are now predicting revenues of UK£1.61b in 2025. If met, this would reflect an okay 6.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 138% to UK£0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£1.62b and earnings per share (EPS) of UK£0.15 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of UK£3.05, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Spire Healthcare Group analyst has a price target of UK£3.40 per share, while the most pessimistic values it at UK£2.78. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. We would highlight that Spire Healthcare Group's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this to the 11 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.7% per year. So it's pretty clear that, while Spire Healthcare Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.