Definitive Healthcare Corp. (NASDAQ:DH) Just Released Its Annual Earnings: Here's What Analysts Think
Last week, you might have seen that Definitive Healthcare Corp. (NASDAQ:DH) released its annual result to the market. The early response was not positive, with shares down 2.1% to US$8.97 in the past week. Revenues of US$251m arrived in line with expectations, although statutory losses per share were US$1.79, an impressive 22% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Definitive Healthcare
Taking into account the latest results, the consensus forecast from Definitive Healthcare's eleven analysts is for revenues of US$266.5m in 2024. This reflects a modest 6.0% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 91% to US$0.16. Before this earnings announcement, the analysts had been modelling revenues of US$269.4m and losses of US$0.28 per share in 2024. Although the revenue estimates have not really changed Definitive Healthcare'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.
The average price target held steady at US$10.50, seeming to indicate that business is performing in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Definitive Healthcare at US$13.00 per share, while the most bearish prices it at US$9.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Definitive Healthcare's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Definitive Healthcare is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$10.50, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Definitive Healthcare going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Definitive Healthcare you should be aware of.
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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.
