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The annual results for Chartwell Retirement Residences (TSE:CSH.UN) were released last week, making it a good time to revisit its performance. The result was fairly weak overall, with revenues of CA$852m being 6.9% less than what the analysts had been modelling. 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 Chartwell Retirement Residences
Following the latest results, Chartwell Retirement Residences' five analysts are now forecasting revenues of CA$1.06b in 2025. This would be a major 25% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CA$1.06b and earnings per share (EPS) of CA$0.24 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
There's been no real change to the consensus price target of CA$18.50, with Chartwell Retirement Residences seemingly executing in line with expectations. 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. There are some variant perceptions on Chartwell Retirement Residences, with the most bullish analyst valuing it at CA$20.00 and the most bearish at CA$17.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. One thing stands out from these estimates, which is that Chartwell Retirement Residences is forecast to grow faster in the future than it has in the past, with revenues expected to display 25% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. Not only are Chartwell Retirement Residences' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.