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Investors in CareRx Corporation (TSE:CRRX) had a good week, as its shares rose 2.6% to close at CA$1.98 following the release of its third-quarter results. Things were not great overall, with a surprise (statutory) loss of CA$0.01 per share on revenues of CA$93m, even though the analysts had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CareRx after the latest results.
View our latest analysis for CareRx
Taking into account the latest results, the current consensus from CareRx's six analysts is for revenues of CA$383.7m in 2025. This would reflect a reasonable 5.0% increase on its revenue over the past 12 months. CareRx is also expected to turn profitable, with statutory earnings of CA$0.13 per share. Before this earnings report, the analysts had been forecasting revenues of CA$385.5m and earnings per share (EPS) of CA$0.15 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
The consensus price target held steady at CA$3.67, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 CareRx at CA$5.25 per share, while the most bearish prices it at CA$2.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It's pretty clear that there is an expectation that CareRx's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.7% annually. So it's pretty clear that, while CareRx's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.