Broker Revenue Forecasts For Apollo Medical Holdings, Inc. (NASDAQ:AMEH) Are Surging Higher
Apollo Medical Holdings, Inc. (NASDAQ:AMEH) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from Apollo Medical Holdings' single analyst is for revenues of US$1.0b in 2022, which would reflect a substantial 34% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 6.9% to US$1.54 in the same period. Prior to this update, the analyst had been forecasting revenues of US$928m and earnings per share (EPS) of US$1.48 in 2022. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.
Check out our latest analysis for Apollo Medical Holdings
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Apollo Medical Holdings' past performance and to peers in the same industry. The analyst is definitely expecting Apollo Medical Holdings' growth to accelerate, with the forecast 34% annualised growth to the end of 2022 ranking favourably alongside historical growth of 19% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Apollo Medical Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Apollo Medical Holdings.
The covering analyst is clearly in love with Apollo Medical Holdings at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
