In This Article:
eHealth, Inc. (NASDAQ:EHTH) investors will be delighted, with the company turning in some strong numbers with its latest results. The results overall were pretty good, with revenues of US$113m exceeding expectations and statutory losses coming in at justUS$0.33 per share, some 57% below what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
We've discovered 1 warning sign about eHealth. View them for free.
Taking into account the latest results, the current consensus, from the five analysts covering eHealth, is for revenues of US$531.4m in 2025. This implies a perceptible 3.8% reduction in eHealth's revenue over the past 12 months. Per-share losses are expected to explode, reaching US$1.32 per share. Before this earnings announcement, the analysts had been modelling revenues of US$529.2m and losses of US$1.56 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a cut to losses per share in particular.
Check out our latest analysis for eHealth
The consensus price target fell 5.9% to US$10.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic eHealth analyst has a price target of US$12.00 per share, while the most pessimistic values it at US$7.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that revenues are expected to keep falling until the end of 2025, roughly in line with the historical decline of 5.3% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.2% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect eHealth to suffer worse than the wider industry.