Analysts Have Made A Financial Statement On Redcare Pharmacy NV's (ETR:RDC) Annual Report
Last week, you might have seen that Redcare Pharmacy NV (ETR:RDC) released its full-year result to the market. The early response was not positive, with shares down 8.4% to €130 in the past week. It was a respectable set of results; while revenues of €1.8b were in line with analyst predictions, statutory losses were 11% smaller than expected, with Redcare Pharmacy losing €0.73 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Redcare Pharmacy
Taking into account the latest results, the current consensus from Redcare Pharmacy's ten analysts is for revenues of €2.36b in 2024. This would reflect a substantial 31% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 82% to €0.10. Yet prior to the latest earnings, the analysts had been forecasting revenues of €2.32b and losses of €0.015 per share in 2024. So it's pretty clear the analysts have mixed opinions on Redcare Pharmacy even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.
As a result, there was no major change to the consensus price target of €146, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on Redcare Pharmacy, with the most bullish analyst valuing it at €190 and the most bearish at €90.00 per share. 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.
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. The analysts are definitely expecting Redcare Pharmacy's growth to accelerate, with the forecast 31% annualised growth to the end of 2024 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Redcare Pharmacy to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Redcare Pharmacy. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €146, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Redcare Pharmacy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Redcare Pharmacy analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Redcare Pharmacy that we have uncovered.
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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.
