Dialogue Health Technologies Inc. (TSE:CARE) Just Reported Earnings, And Analysts Cut Their Target Price
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It's been a sad week for Dialogue Health Technologies Inc. (TSE:CARE), who've watched their investment drop 10% to CA$5.33 in the week since the company reported its full-year result. The statutory results were not great - while revenues of CA$68m were in line with expectations,Dialogue Health Technologies lost CA$4.48 a share in the process. 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.
Check out our latest analysis for Dialogue Health Technologies
Taking into account the latest results, the most recent consensus for Dialogue Health Technologies from eight analysts is for revenues of CA$94.7m in 2022 which, if met, would be a huge 39% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 91% to CA$0.33. Before this latest report, the consensus had been expecting revenues of CA$98.0m and CA$0.30 per share in losses. So it's pretty clear consensus is more negative on Dialogue Health Technologies after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a modest increase to per-share loss expectations.
The average price target fell 8.3% to CA$9.83, implicitly signalling that lower earnings per share are a leading indicator for Dialogue Health Technologies' valuation. 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. Currently, the most bullish analyst values Dialogue Health Technologies at CA$11.50 per share, while the most bearish prices it at CA$8.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dialogue Health Technologies' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Dialogue Health Technologies' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 39% growth on an annualised basis. This is compared to a historical growth rate of 57% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% per year. Even after the forecast slowdown in growth, it seems obvious that Dialogue Health Technologies is also expected to grow faster than the wider industry.