Analysts Have Made A Financial Statement On InnovAge Holding Corp.'s (NASDAQ:INNV) Second-Quarter Report
Shareholders might have noticed that InnovAge Holding Corp. (NASDAQ:INNV) filed its second-quarter result this time last week. The early response was not positive, with shares down 8.0% to US$5.30 in the past week. It looks like a positive result overall, with revenues of US$189m beating forecasts by 2.7%. Statutory losses of US$0.03 per share were roughly in line with what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for InnovAge Holding
Taking into account the latest results, the consensus forecast from InnovAge Holding's four analysts is for revenues of US$754.4m in 2024. This reflects a modest 4.7% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 33% to US$0.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$756.0m and losses of US$0.13 per share in 2024. While this year's revenue estimates held steady, there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at US$6.83, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 InnovAge Holding at US$7.00 per share, while the most bearish prices it at US$6.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 clear from the latest estimates that InnovAge Holding's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.5% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect InnovAge Holding to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$6.83, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for InnovAge Holding going out to 2026, and you can see them free on our platform here.
We also provide an overview of the InnovAge Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
