IHH Healthcare Berhad (KLSE:IHH) came out with its third-quarter 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 look mixed - while revenue fell marginally short of analyst estimates at RM5.6b, statutory earnings were in line with expectations, at RM0.34 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 IHH Healthcare Berhad
After the latest results, the 20 analysts covering IHH Healthcare Berhad are now predicting revenues of RM25.1b in 2025. If met, this would reflect a meaningful 9.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 22% to RM0.23 in the same period. In the lead-up to this report, the analysts had been modelling revenues of RM24.6b and earnings per share (EPS) of RM0.23 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Despite these upgrades,the analysts have not made any major changes to their price target of RM7.97, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values IHH Healthcare Berhad at RM9.10 per share, while the most bearish prices it at RM7.10. 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.
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. It's pretty clear that there is an expectation that IHH Healthcare Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.6% per year. Factoring in the forecast slowdown in growth, it looks like IHH Healthcare Berhad is forecast to grow at about the same rate as the wider industry.